NZD/USD last trades at $0.6424, 13 pips........>

KIWI: NZD/USD last trades at $0.6424, 13 pips higher on the day, after NZD

closely tracked gyrations in AUD overnight.

- NZD/USD slipped a touch in early Asia-Pac trade as APRA strengthened its

regulations to combat contagion risk within banking groups; ANZ commented that

as a result it may have a limited capacity to inject capital into its NZ entity,

- However, this was followed by a recovery, which occurred in sync with an

upswing in AUD/USD amid reported demand for the latter cross on the back of FX

hedging from Australian exporters & short covering by leveraged funds.

- NZD/USD struggles to make substantial headway beyond the the $0.6421-23 zone,

which registered a couple of lows this month. Consolidation above opens the

23.6% fibo retracement of the Jul-Aug fall at $0.6475. Conversely, bears look

for a pullback below the trendline resistance-turned-support at $0.6405 to

regain momentum. A break would bring the recent cycle low of $0.6378 into play.

- Participants will be on the lookout for the results of the latest GDT auction

in the London afternoon. NZ credit card spending data takes focus tomorrow, with

a retail sales print coming up on Friday.