NZD/USD sits at $0.6363, unchanged. RBNZ Gov...>

KIWI: NZD/USD sits at $0.6363, unchanged. RBNZ Gov Orr said that monetary policy

remains as effective as ever, in line with the RBNZ's recent analytical piece.

Orr pointed to the need for fiscal policy to support MonPol. He also explained

the reasons for the recent OCR cut (see the latest RBNZ bullet). Re: FX he noted

that the exchange rate plays a significant additional role in competitiveness.

- Fonterra said that NZ milk collection rose 2.2% Y/Y in July.

- This comes after the rate shed 32 pips yesterday, with the kiwi landing at the

bottom of the G10 pile as sentiment turned sour. A recovery attempt noted in

London hours held relatively shallow and the pair eased off again into the WMR

fix before trading sideways into the close.

- The initial bearish focus falls on $0.6342, Monday's low and the worst level

since Sep 2015. A break here would open up the lower 1.0% 10-DMA envelope/lower

Bollinger band (2%) at $0.6336/31. Bulls need the Aug 7 low of $0.6358 to give

way, before they target the $0.6400 mark.

- ANZ will publish their biz. conf. survey on Thursday & the cons. conf. survey

on Friday. Also on Friday, we will see the release of NZ building permits.