NZD/USD deals at $0.6355, a touch higher on....>

KIWI: NZD/USD deals at $0.6355, a touch higher on the day. NZ markets are closed

for a public holiday today. NZD outperforms its G10 peers, just; Saturday's

statement from Chinese MOFCOM that the text of the "phase one" trade deal with

China is "basically completed" may be lending some support.

- On Friday, the pair failed to benefit from the broader risk-on mood and lost

altitude, showing below the former neckline at $0.6357 in the process, amid

reports of leveraged stops being triggered below $0.6371. A fairly strong USD

capped recovery attempts, keeping the downside momentum intact. Having closed in

the red, the pair snapped its four-week winning steak.

- Friday's dip was checked by the 38.2% retracement of the Oct rally at $0.6347.

A fall below there/50-DMA at $0.6342 would clear the way to the mid-point of the

aforementioned rally at $0.6320. Bulls look for a pick-up in topside momentum,

which would result in a return above $0.6357 and then onto the $0.6400 handle.

- Looking ahead, building permits and ANZ biz. confidence come out on Thursday,

while ANZ consumer confidence hits on Friday.