NZD/USD Sinks After POTUS Halts U.S. Stimulus Talks

NZD/USD wavered in Asia-Pac and European hours, as participants assessed familiar matters and a monetary policy decision from the RBA. It started to lose altitude after the WMR fix and dived further as U.S. Pres Trump halted stimulus talks with the Democrats, despite Fed Chair Powell's warning of stark consequences to come if the government fails to deliver enough fiscal aid.

• Headline price index rose for the second time in a row at yesterday's GDT auction, with whole milk powder edging 1.7% higher, roughly in line with expectations.
• Labour leader Ardern and National leader Collins faced off in a town-hall style debate yesterday evening. The opposition leader had a difficult time in the lead-up to the debate, with unidentified National MPs criticising her communication/electoral strategy and signalling dissatisfaction within the party ranks.
• NZD/USD sits at $0.6584, marginally shy of neutral levels. Bears look for a dip through the 100-DMA at $0.6549 & Sep 24 low of $0.6512 before targeting Aug 20 low/23.6% retracement of the YtD range at $0.6489/85. Bulls need a recoil above the $0.6654-58 area, which capped gains over the last four days, before taking aim at Sep 18 high of $0.6798.
• Preliminary ANZ Business Confidence Survey comes out on Thursday.