NZD/USD has gained impetus with the daily......>

KIWI: NZD/USD has gained impetus with the daily chart reporting inverse head and

shoulders, a bullish reversal pattern, confirmed by Monday's close above the

$0.6474 neckline. The pattern has been unfolding over the last three and a half

months. The rate is currently oscillating around the psychological level & 50%

retracement of the Jul 19 - Oct 1 sell-off in the $0.6500 area. A break above

the tentative channel top at $0.6537 would expose the 200-DMA at $0.6546.

- The trigger for Monday's push above the neckline was a combination of strong

Chinese economic data and New Zealand Finance Minister's pledge to boost fiscal

spending "significantly." The latter comes at a time central bankers show an

increasing readiness to invoke the credo uttered by RBNZ Gov Orr in a September

speech: "monetary policy needs friends," namely "government fiscal policy."

- Mkt pricing for an OCR cut in Feb fell to ~14% from nearly 30% seen on Friday.

- But one should be mindful of headwinds. On Monday, regional events may have

overshadowed signals that the U.S. & China are struggling to move into a higher

gear in their trade talks, even as the Dec 15 tariff deadline looms large.

- See chart at: https://emedia.marketnews.com/marketnewsintl/NZDUSD03122019.png