NZD/USD has pulled back to neutral levels......>

KIWI: NZD/USD has pulled back to neutral levels from an earlier session high of

$0.6349. The pair last deals at $0.6324.

- A small sell-off was seen in the run-up to the RBNZ monetary policy decision,

but the actual announcement inspired a rebound as it was deemed less dovish than

expected. The RBNZ left its policy rate at 1.0%, in line with expectations, but

didn't commit to any imminent easing, instead noting that there still is "scope

for more fiscal and monetary stimulus, if necessary." BBG trader sources pointed

to a short squeeze in NZD/USD after the announcement of the decision.

- From a technical perspective, a rally through the 21-DMA at $0.6350 and the

50.0% retracement of the Sep 12-20 slide at $0.6353 would please bulls, allowing

them to retain momentum. Above there potential resistance is defined at $0.6371,

a rejection of the level would result in the confirmation of a now tentative

descending trendline drawn off the Jul 22 high. Conversely, bears look for a

throwback towards the $0.6300 barrier.

- Looking ahead, ANZ will publish their cons. conf. survey on Friday.