NZD/USD eked out modest gains and last deals...>

KIWI: NZD/USD eked out modest gains and last deals at NZ$0.6630, 11 pips above

the opening levels.

- The kiwi drew a degree of strength from the fact that NZ 10-month budget

surplus came in larger than expected.

- Worth noting that NZ gov't revised the country's legislation regulating the

dairy industry. Fonterra will now be able to refuse to supply milk to

independent processors with large own supplies. Nonetheless, Fonterra said that

they are disappointed with the dairy laws review and see it as a missed

opportunity, as the aforementioned rules have been merely tweaked.

- Familiar technical picture remains in play, with the initial bullish target

provided by the 50-DMA at $0.6638. Above here opens the 38.2% fibo retracement

of $0.6939-$0.6482 at $0.6657, ahead of yesterday's peak located a further 10

pips above. Meanwhile, a dip through $0.6600 would shift bearish focus to the

21-DMA at $0.6555.

- No more major NZ data is expected towards the end of the week, with Q1 volume

of all buildings, due tomorrow, set to conclude this week's releases.