NZD/USD printed a 2.5-month high on............>

KIWI: NZD/USD printed a 2.5-month high on Wednesday, but faded gains later in

the day amid a further ratcheting up of U.S.-China tensions. The White House

withdrew its recognition of Hong Kong's autonomy from mainland China, while the

House of Representatives passed a resolution punishing Beijing for its action

against Muslim minorities. The kiwi dipped under pressure from these

developments, before slightly trimming losses ahead of the close.

- In an interview with Stuff, RBNZ Gov Orr again suggested that the central bank

is open to monetary financing of gov't debt, but then listed a series of

caveats. He noted that monetary financing is not possible under existing

legislation and would only make sense if bond mkt "fell apart".

- The rate trades flat at $0.6181, with bears looking for a drop below May 22

trough at $0.6081. On the flip side, bulls would be pleased by a clean break

above the 100-DMA at $0.6201, which would expose Wednesday's peak at $0.6233.

- ANZ Business Confidence Survey will be released later today, with the Consumer

equivalent due tomorrow.