NZD/USD has slipped 8 pips, last deals at......>

KIWI: NZD/USD has slipped 8 pips, last deals at $0.6421. Investors weighed the

latest signal re: U.S.-China spat, with U.S. Pres Trump's relatively hard-line

comments re: Huawei coming after weekend press reports suggesting that U.S.

Commerce Dep't may extend its permission for the Chinese tech giant to buy

supplies from U.S. producers.

- In spite of Trump's comments, BBG cited trader sources as saying that NZD was

sold against AUD on the perception that U.S.-China tensions have slightly eased.

- NZ services PMI accelerated to 54.7 from 53.0, while PPI measures (input &

output) came in positive in Q2 after negative readings registered in Q1.

- The rate is locked within the $0.6423-21 zone, which hosts several lows

printed earlier this month & a trendline support, but had a look below

overnight. A clean break here would open the $0.6400 barrier, followed by the

Aug 7 cycle low of $0.6378. Conversely, a return above the aforementioned region

would bring Friday's high of $0.6449 back into play.

- NZ credit card spending and retail sales will be published on Wednesday and

Friday respectively.