NZD/USD last trades flat at $0.6376. The.......>

KIWI: NZD/USD last trades flat at $0.6376. The earlier uptick seemed to be just

a modest pullback after the pair dropped ahead of the close in reaction to

downbeat NZ labour mkt data. The jobs report revealed that unemployment

increased to 4.2% from 3.9%, beating exp. of 4.1%. Meanwhile, employment growth

slowed in line with estimates, while participation inched higher.

- To recap, NZD/USD advanced through Tuesday's Asia-Pac session after an FT

headline suggesting that the U.S. considers removing tariffs on China breathed

life into risk appetite. However, European hours saw a sharp sell-off as USD

appreciated on the back of a strong ISM non-m'fing print & rising U.S. Tsy

yields. Strong GDT auction results failed to push the pair higher, even as both

headline price index & whole milk powder prices increased vs. the prev. event.

Subsequent recovery attempt was interrupted by the aforementioned NZ jobs data.

- A low of $0.6370 printed Tuesday confirmed the validity of a channel support,

which today intersects at $0.6379. With the rate already below there, bears

target the 50-DMA at $0.6343, followed by the Oct 30 low of $0.6433. Bulls need

a return into the channel before setting their sights on the $0.6400 mark.