NZD/USD continued to succumb to broader USD....>

KIWI: NZD/USD continued to succumb to broader USD strength on the first day of

the new trading month/quarter, breaching $0.6700 for the first time since May

2016. NZD/USD last operates just above the figure following a 7-Year low in the

NZIER Business Confidence metric, continuing the recent trend of softening

business confidence since the new government assumed power.

- NZIER noted that "weak business confidence and deteriorating profitability is

making businesses more cautious about planning for the future. Although hiring

is holding up across most sectors, investment intentions have declined. This is

particularly the case for investment in new buildings, with a net 4 percent

intending to reduce this type of investment. This is flowing through to a

softening in the pipeline of construction work, with architects expecting a

decline in commercial and government construction work over the coming year."

- Initial support is noted at $0.6687 (2018 Low July 2) with resistance noted at

$0.6734 (Low June 29).

- The latest GDT dairy auction & QV house price data will hit overnight i.e. in

EU/US hours on Tuesdays.