NZD/USD sits at $0.6300, a mere three pips.....>

KIWI: NZD/USD sits at $0.6300, a mere three pips lower.

- The rate retained its recent heavy tone on Thursday, shedding 19 pips on the

day. The release of better than expected local GDP figures prompted NZD/USD to

push higher, but gains were quickly erased as Y/Y expansion was slowest in five

years. Contagion from softer AUD & CNY further pressured NZD to its intraday low

of $0.6299. Subsequent recovery attempt held shallow and the rate faded again,

finishing near its worst levels.

- The rate oscillates around $0.6300, which has provided support since mid-week

(safe for marginal intraday violations as the level was tested on Thursday). A

clean break under aforesaid round figure would inspire bears to target the Sep 3

YtD low of $0.6269. Meanwhile, a firm lift above $0.6300 and the lower 1.0%

10-DMA envelope at $0.6301 would bring into view $0.6333/34, which represents

Thursday's high/the 23.6% retracement of the recent fall.

- New Zealand's credit card spending data will be released later today. Focus

next week turns to trade balance numbers and the RBNZ monetary policy decision,

both due on Wednesday. ANZ consumer confidence will follow on Friday.