NZD/USD had come under early pressure from.....>

KIWI: NZD/USD had come under early pressure from worries re: reported divisions

between the U.S. & China over some key trade matters, before softer than exp.

Chinese inflation data added further weight to the kiwi, sending the cross to

session lows of $0.6810. The subsequent recovery was interrupted by the release

of an FT sources story, which suggested that U.S. & Chinese trade reps are

scrambling to cobble an MoU together to facilitate a meeting between Trump & Xi

next month. 

- The rate last deals at $0.6824, 13 pips lower on the day. 

- Bears look to $0.6808, which represents the 21-DMA, and a breach of that level

would draw their attention to the 50-DMA at $0.6787. Meanwhile, the initial

bullish target is provided by yesterday's peak at $0.6856, followed by the upper

1.0% 10-DMA envelope at $0.6867. 

- The NZ economic docket is rather empty next week, but NZ focus will likely be

drawn to any developments in the Sino-U.S. trade relations, after the top-level

talks in Beijing conclude today.