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NZD/USD last trades flat at $0.6883, ahead.....>

KIWI
KIWI: NZD/USD last trades flat at $0.6883, ahead of the appearance of RBNZ Dep
Gov Bascand, who will speak about bank capital review at 2330GMT. Worth
reminding that Bascand's heavily caveated suggestions re: the potential for rate
cuts weighed on NZD on Friday.
- The rate closed almost 40 pips higher Monday, as general optimism re:
Sino-U.S. trade relations was evident, despite mixed signals being sent. The
U.S. delayed the next round of tariffs on China, while U.S. President Trump
pointed to a summit with his Chinese counterpart Xi. However, initial enthusiasm
moderated, as Xinhua published a commentary piece arguing that the "trade talks
will be harder at the final stage." Elsewhere, NZD was propped up by a strong
domestic retail sales print in the early part of yesterday's Asia-Pac session.
- Bulls look to $0.6902, where the rate peaked Monday, and a break above would
bring the 1.0% 10-DMA envelope at $0.6919 into play. Conversely, bears target
Monday's low/21-DMA at $0.6840/37.
- NZ focus turns to trade balance data due Wednesday, biz. confidence due
Thursday and building permits due Friday.

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