NZD/USD has gained traction after New..........>

KIWI: NZD/USD has gained traction after New Zealand's Treasury Department

reported the widest budget surplus in 11 years.

- NZ budget surplus came in at +NZ$7.51bn, topped both last year's score of

+NZ$5.53bn and projections of +NZ$3.47bn this year.

- NZ FinMin Robertson noted that "the gov't's books are indeed in good shape"

and put the country in a good position to face poorer international economic

outlook. He added that NZ Tsy is already forecasting a much smaller surplus next

year amid increased spending.

- NZD may have been additionally supported by yuan appreciation, inspired by a

slightly stronger than exp. PBoC fix, as well as hopes for progress during the

upcoming round of U.S.-China talks (despite yesterday's blacklisting of some

Chinese tech companies by the U.S.).

- NZD/USD last trades at $0.6318, 29 pips better off. The rate is threatening to

break above its 21-DMA at $0.6819, which would shift bullish focus to the Oct 4

high of $0.6337. Bears look for a retreat back below the $0.6300 mark.