NZD/USD last deals 6 pips higher at $0.6264....>

KIWI: NZD/USD last deals 6 pips higher at $0.6264. The kiwi has drawn some

support from China's clarification that its decision to cancel a planned visit

in U.S. farm states is not related to trade talks.

- The rate lost altitude on Friday, printing a fresh cycle low of $0.6255 in the

process. An S&P piece highlighting weaknesses in NZ banking system applied

weight to the pair in Asia-Pac hours, but a stronger yuan limited the downside.

Sell-off accelerated into Europe as USD regained poise. This allowed NZD/USD to

extend its weekly losses to ~120 pips, with implied odds of a rate cut at

Wednesday's RBNZ meeting increasing to ~34% from ~14% seen the previous Friday.

- A fall under the aforementioned cycle low of $0.6255 would clear the way

towards the lower 2.0% 10-DMA envelope at $0.6232. Bulls look for a rebound

above $0.6300/01, which represent a psychological level/23.6% fibo retracement

of the Sep 12-Sep 20 slide.

- The RBNZ monetary policy decision, due on Wednesday, headlines the local

docket this week. Other points of note include trade balance (also Wednesday)

and ANZ consumer confidence survey (Friday).