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NZD/USD last trades at $0.6859, 13 pips........>

KIWI
KIWI: NZD/USD last trades at $0.6859, 13 pips better off on the day, after NZ
retail sales (ex inflation) topped expectations and printed at +1.7%% vs. a
+0.5% forecast. Also today, Pres Trump reported "substantial progress" in
Sino-U.S. trade talks, adding that the U.S. has delayed the Chinese tariff
deadline. NZD showed muted reaction to Trump's comments.
- The rate finished 45 pips higher Friday, as optimism re: Sino-U.S. trade
negotiations allowed to offset the impact of comments from RBNZ Dep Gov Bascand,
who suggested that an increase in bank capital requirements (from 14% to 15%)
may eventually result in rate cuts, pressing NZD to the bottom of the G10 pile
in the Asia-Pac session (although that scenario was heavily caveated).
- Bulls need to clear the Feb 21 high of $0.6877 before targeting the 1.0%
10-DMA envelope at $0.6902, while bears eye the Feb 18/today's low of $0.6840,
followed by the 21-DMA at $0.6833.
- NZ highlights this week includes trade balance due Wednesday, biz. confidence
due Thursday and building permits due Friday. Tuesday will see remarks from
RBNZ's Bascand, which may provide some clarity re: RBNZ policy guidance.

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