NZD/USD changes hands at $0.6385 (virtually....>

KIWI: NZD/USD changes hands at $0.6385 (virtually unchanged vs. neutral levels),

with participants awaiting tomorrow's monetary policy decision from the RBNZ. At

typing, market pricing suggests a modest ~8% chance of a cut to the OCR vs. the

~6% seen on Monday.

- The rate extended its losing streak to four consecutive days Monday.

Above-forecast Chinese CPI & a RTRS report re: restart of one of Foxconn's

Chinese plants lent a helping hand to the kiwi in Asia-Pac hours, but the pair

faltered thereafter as DXY edged higher.

- Earlier today, NZ Tsy published its financial statements for 6 months ended

Dec 31. Reported budget surplus was NZ$437mn vs. exp. of a NZ$82mn deficit.

- The rate still operates near its 3-month lows touched on Monday. A fall below

the 76.4% retracement of the Oct 1 - Dec 31 rally at $0.6334 would signal that

the way towards the Nov 8 low of $0.6322 is clear. On the flip side, bulls would

welcome a rebound above the 100-DMA/mid-point of that rally at $0.6475/80.

- On the data front, BusinessNZ M'fing PMI & food price index will provide some

interest on Friday.