NZD/USD shed 53 pips yesterday, which put......>

KIWI: NZD/USD shed 53 pips yesterday, which put the recent cycle lows back into

view, as a rally in the greenback helped erase post-RBNZ kiwi strength.

- The pair edged lower in the run-up to the RNZ monetary policy decision,

delivered in yesterday's Asia-Pac hours. The decision itself, however, put a bid

into the rate as lack of any firm commitment to further policy easing was deemed

a marginally hawkish surprise. After peaking just shy of $0.6350, the rate began

fading and pulled back to neutral levels ahead of Europe.

- A firmer USD, buoyed by the impeachment saga, relatively hawkish comments from

Fed's Evans and better than exp. U.S. new home sales data, weighed on NZD/USD

dragging it lower through the day.

- Fonterra released their earnings, posting a second straight full-year loss.

- NZD/USD trades little changed, last sits at $0.6274. The recent cycle lows of

$0.6255 remain in sight and a fall below there would bring the lower Bollinger

band (2%) at $0.6242 into play. Bulls look to recover $0.6300/01, the

psychological barrier/23.6% retracement of the Sep 12-20 slide.

- Looking ahead, ANZ will publish their cons. conf. survey on Friday.