NZD/USD shed a handful of pips Monday. It......>

KIWI: NZD/USD shed a handful of pips Monday. It slid through the European hours,

probing the water below $0.6600 ahead of the WMR fix, as the greenback firmed

up. The rate then bounced off lows, with USD losing steam on the back of reports

re: tariff truce struck by French Pres Macron and U.S. Pres Trump.

- ANZ have removed a rate cut previously pencilled in for May from their RBNZ

call and now expect a flat OCR track through at least mid-2021. They note that

"a near-term cut would require an abrupt change of circumstances."

- With NZD/USD currently trading flat at $0.6609, bears look for a sustained

move through $0.6600 and the low of Jan 15 at $0.6584. This would give them some

impetus, while exposing the $0.6565 50-DMA. Bulls need a jump above trendline

resistance at $0.6642 before taking aim at the Jan 16 high of $0.6665.

- A GDT auction, coming up in the London afternoon on Tuesday, will provide some

interest. New Zealand's CPI and credit card spending will be published on

Friday.