NZD/USD finished > $0.6400 at the close of.....>

KIWI: NZD/USD finished > $0.6400 at the close of play last week, even after Fed

Chair Powell managed to push the USD off worst levels. Rate last deals at

$0.6426, ~25 pips higher on the day, reversing the blip lower that was apparent

into last week's close (which could have been profit taking, may have been

exacerbated by low volume).

- The close above $0.6400 will have cemented bullish hopes, after the cross

registered 4 consecutive higher closes between Tuesday & Friday, with the recent

round of positivity surrounding Sino-U.S. trade matters front & centre. Also

worth flagging that the latest round of CFTC data revealed that NZD net short

non-commercial positioning as a % of open interest is at the highest levels seen

since Sep '18.

- Local Q2 manufacturing data came out soft, but NZD is little moved.

Participants have had to be cognisant of the latest round of PBoC RRR cuts,

announced Friday and disappointing Chinese trade data released over the weekend.

- Friday's high of $0.6444 provides initial resistance. Conversely, a break

below $0.6400 would allow bears to target the 21-DMA at $0.6389.