NZD/USD has inched lower in reaction to a......>

KIWI: NZD/USD has inched lower in reaction to a deterioration in NZ consumer

confidence indicated by the latest ANZ survey. Headline index fell to 113.9 from

118.2. The pair last sits a touch lower at $0.6293.

- On Thursday, the rate managed to cling on to its Asia-Pac gains and stage an

attempt at extending them in U.S. hours. The upside momentum was ignited by

comments from RBNZ Governor Orr, who expressed satisfaction with how the August

50bps cut to the OCR is working its way through the economy and played down the

prospect of employing unconventional policy tools. Subsequent round trip from

the intraday peak at $0.6327 was driven by fluctuations in USD. The pair

finished 26 pips better off with NZD atop the G10 pile.

- A fall below the $0.6269-66 region, which limited losses on Sep 3 and over the

last two sessions, would bring the recent cycle lows of $0.6255 back into view.

Conversely, a clearance of the psychological barrier/23.6% retracement of the

Sep 12-20 slide at $0.6300/01 would open the 21-DMA at $0.6345.

- NZ focus next week turns to domestic building permits and ANZ business

confidence, both due on Monday.