NZD/USD ticked higher as the RBNZ announced....>

KIWI: NZD/USD ticked higher as the RBNZ announced its decision re: capital

requirements. New Zealand's central bank raised capital buffers by expected

margins, but extended the transition period to seven years from the previously

planned five years. A congestion of technical levels in the $0.6540-44 area

capped the rate initially, but a revision to ANZ RBNZ call pushed NZD/USD above

there. According to their note, ANZ now look for just one more 25bp OCR

reduction in May next year.

- The kiwi was unfazed by a miss in the local Q3 vol of all buildings.

- After breaking above Weds high, channel top & the 200-DMA, NZD/USD sits 22

pips better off at $0.6551. Bulls target the 61.8% retracement of the Jul - Oct

bear mkt at $0.6567, followed by the high of Aug 6 at $0.6587. A fall under the

aforementioned resistance-turned-support zone would return the focus to the

broken neckline at $0.6475 and the Nov 4 peak at $0.6466.

- RBNZ Gov Orr will hold a presser on capital framework at the top of the hour.

- To recap, Weds saw NZD/USD extend its winning streak as a soft ADP employment

report hit USD, while trade optimism helped the rate hold onto gains.