NZD/USD trades at $0.6346, virtually...........>

KIWI: NZD/USD trades at $0.6346, virtually unchanged on the day.

- Westpac Consumer Confidence Index fell to 103.1 from 103.4 in Q3, with the

accompanying commentary noting that "that the RBNZ's double-cut [likely] scared

people more than it helped," while another 25bps cut is exp. in November.

- Monday's Asia-Pac session saw the rate trade sideways, as a risk-off mood &

better commodity prices, stemming from developments in the oil mkt, worked in

opposite directions. Selling pressure emerged into Europe as USD picked up a

bid, underpinned by softening EUR & GBP, as well as persistent risk aversion.

- From the technical perspective, the $0.6342/41 region, which limited losses on

Aug 26 & yesterday, continues to provide the initial layer of support. Below

would open $0.6326, which marks the lows of Aug 28 & Sep 4. Failure to take out

these levels would encourage bulls to target $0.6392, the 23.6% retracement of

the Jul-Aug fall where the rate topped out yesterday.

- Investors will be on the lookout for the results of the latest GDT auction,

due in the London afternoon. Wednesday's release of Q2 BoP C/a balance will

precede the publication of Q2 GDP on Thursday.