NZD/USD also struggling early this week,.......>

KIWI: NZD/USD also struggling early this week, alongside broader risk off flows,

rate last deals some ~20 pips or so lower at $0.6848. NZ Q3 manufacturing

volume, released earlier, fell by 1.6% Q/Q, with negative revisions apparent.

- NZIER noted that "the latest NZIER Consensus Forecasts expects a growth

outlook which is broadly unchanged from the previous quarter. Over the coming

year, a softer outlook for investment is offset by expectations of stronger

export growth. Business confidence has fallen sharply over the past year, and

with profitability continuing to deteriorate there are signs it is impacting

negatively on investment intentions. However, with hiring still solid and wage

growth picking up, increased household income is supporting spending."

- The break below the 200-DMA will encourage bears, who now target the 21-DMA at

$0.6836. On the topside, bulls look for a reclaim of the 200-DMA before moving

focus to Thursday's high at $0.6901.

- Focus during the remainder of the week falls on RBNZ Gov. Orr appearing in

front of parliament Thursday, as well as the NZ Tsy publishing its half year

fiscal & economic update Thursday.