NZD/USD fluctuated within a tight range........>

KIWI: NZD/USD fluctuated within a tight range overnight, except for a brief

knee-jerk lower. The rate last sits at $0.6470, virtually unchanged on the day.

- Modest NZD/USD sell-off was evident early on amid caution re: Sino-U.S. trade

relations provoked by Friday's round of U.S. Pres Trump's combative comments.

- The pair sank to its session low of $0.6440 as BBG ran a headline stating

"RBNZ could cut OCR to minus 0.35% in a crisis, Treasury says." However, the

move was promptly retraced as the headline proved somewhat misleading.

- Per the BBG piece, NZ Tsy's paper claims that -0.35% is the lowest possible

level of the OCR, whereby market rates paid by households and businesses would

remain positive. The paper also called asset purchases a "less favourable tool,"

while NZ Tsy stressed that the paper is "not gov't policy or Tsy advice" and

preparing it doesn't imply that the risk of economic downturn has increased.

- A stronger than exp. PBoC fix allowed NZD/USD to extend recovery thereafter.

- Bulls look to the 23.6% fibo retracement of the Jul-Aug slide at $0.6475,

bears target the lower 1.0% 10-DMA envelope at $0.6453.

- NZ FPI/REINZ house sales are due tomorrow, BusinessNZ m'fing PMI hits on Fri.