NZD/USD dropped back below its 50-DMA..........>

KIWI: NZD/USD dropped back below its 50-DMA Friday, as broader risk aversion

applied pressure to the pair. Downbeat earning reports and continued escalation

of U.S.-China tensions sapped risk appetite through the day, with most countries

in Europe and many in Asia off for holidays.

- NZ PM Ardern gave a round of morning interviews at the start to the week,

noting that New Zealanders will learn about the country's move into alert level

2 (from the current 3) with a two days' notice. The Cabinet will make a decision

on the matter next Monday. At alert level 2 all businesses and public places

would be allowed to open with certain social distancing regulations in place.

- An array of factors described earlier has prompted participants to shy away

from riskier FX this morning. NZD/USD trades -35 pips at $0.6028. A breach of

Apr 28 low of $0.5992 would turn bearish focus to Apr 23 low of $0.5911. Bulls

look to take out the 50-DMA, intersecting at $0.6051, before targeting the key

Apr 30 high of $0.6176.

- Building permits (Tuesday), quarterly employment and wage data (Wednesday), as

well as inflation expectations (Thursday) headline the NZ docket this week.