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NZD/USD last deals at $0.6617, +20 pips on.....>

KIWI
KIWI: NZD/USD last deals at $0.6617, +20 pips on the day. The kiwi has taken
advantage of a broad-based risk-on reaction to UK exit polls, which indicated
that the Conservative Party is poised to win a comfortable majority.
- Some NZ data was already out today. REINZ house sales extended losses, falling
1.9% Y/Y in Nov. BusinessNZ m'fing PMI printed at 51.4 vs. the prior 52.6.
- This comes after the rate added 11 pips Thursday as U.S. Pres Trump met with
his trade team to discuss delaying Dec 15 round of China tariffs. Per BBG
sources, he signed off on a phase-one pact w/Beijing that allows to avert new
levies. Details are yet to be unveiled, but press reports suggest that China
agreed to buy more U.S. farm products in exchange for some tariff roll-back.
- NZD/USD has eased off highs somewhat, but remains elevated. Bulls look for a
resumption of the topside momentum, which would bring into view the 76.4%
retracement of the Jul 19 - Oct 1 slide at $0.6652. Bears need a fall below the
$0.6600 mark before taking aim at the $0.6537 200-DMA.
- NZ calendar next week is headlined by local Q3 GDP, due Thurs alongside trade
balance. ANZ biz. conf. hits on Tues & their cons. conf. survey is due Fri.

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