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NZD/USD trades at $0.6502, virtually unch......>

KIWI
KIWI: NZD/USD trades at $0.6502, virtually unch. on the day. It continues to
operate near the new multi-month high of $0.6511 touched yesterday. The initial
bullish target is provided by the 200-DMA at $0.6546 and a clearance of the
level would expose $0.6587, the high of Aug 6. Conversely, a dip under the Nov 4
high of $0.6466 would clear the way to the $0.6413 100-DMA.
- The kiwi topped the G10 pile yesterday, defying worrying press reports re:
U.S.-China trade talks & combative trade comments from U.S. Commerce Sec Ross.
It received an early boost from a round of strong Chinese PMI readings (released
over the weekend) and NZ FinMin Robertson's pledge to "significantly" increase
infrastructure spending. Solid terms of trade data likely helped consolidate
gains. NZD/USD strengthened accordingly, drawing further support from weak U.S.
ISM m'fing survey & construction spending data, which sapped USD strength.
- Looking into the NZ calendar, the results of the latest GDT auction will be
published in today's London afternoon, RBNZ Gov Orr speaks on Wednesday, while
Q3 vol of all buildings hits on Thursday. Orr will speak again on Thursday, when
the RBNZ announces its decision on bank capital.

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