NZD/USD has dropped 23 pips and last trades....>

KIWI: NZD/USD has dropped 23 pips and last trades at $0.6720 in early Asia-Pac

dealing amidst BBG reports of U.S. & China making little progress on IP theft

issues. 

- This occurs after the rate dropped 20 pips Friday, despite a knee-jerk spike

higher on the back of a BBG story suggesting that China has offered path to

eliminate its trade imbalance with the U.S, as U.S. officials limited the

initial enthusiasm later in the day. 

- Bears look for a break below the Jan 8 low of $0.6708, which would open up the

100-DMA at $0.6690, while bulls keep an eye on the 21-DMA at $0.6745 and a move

through that level would allow them to target yesterday's high of $0.6784. 

- NZ focus this week turns to Chinese GDP due later today, as well as domestic

CPI due Wednesday. As a reminder, Wellington observes a regional holiday today,

which may affect NZD liquidity.