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NZD/USD sank 31 pips overnight on the back.....>

KIWI
KIWI: NZD/USD sank 31 pips overnight on the back of a broadly deteriorating risk
sentiment. A trader source speaking with BBG pointed to NZD & AUD sales vs. JPY
after S&P500 futures turned negative, with sell-stops in NZD/USD located under
the cycle low of $0.6378. Softening yuan only added weight to the kiwi, as
USD/CNY hit the highest levels since 2008.
- NZD/USD broke under the Aug 7 cycle low of $0.6378 and touched levels not seen
since 2016. It continues to hover just above, last at $0.6373. Bears look to
extend losses through the trendline resistance-turned-support at $0.6369, which
would allow them to regain the recent momentum. It would also bring into play
the lower Bollinger band (2%) at $0.6337. Bulls need a return onto the $0.6400
handle to get some reprieve before attempting a move at the 0.6421-23 zone,
which registered a couple of lows this month.
- NZ focus turns to domestic retail sales ex inflation, due on Friday.

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