NZD/USD was trapped between its 200- and.......>

KIWI: NZD/USD was trapped between its 200- and 100-DMAs yesterday & finished 16

pips worse off. The rate filed to hold the modest gains registered on the back

of a mixed NZ labour mkt report & slipped in Asia-Pac hours. The London morning

brought some reprieve, as a touted progress in works on a coronavirus vaccine

lifted the pair to intraday highs. Nonetheless, those gains proved short lived

as better than expected U.S. economic data lent support to the greenback.

- With the RBNZ set to deliver their first monetary policy decision since Nov at

next week's meeting, markets price in a mere ~3% chance of a rate cut.

- With the rate trading at $0.6481, a handful of pips higher on the day, bulls

look for a breakout from the recent range. Should the 200-DMA at $0.6506 give

way, the topside focus would turn to the 23.6% retracement of the Dec 31 - Feb 4

at $0.6522. Bears would be pleased by a clean break below the 100-DMA at

$0.6473. The next layer of support is located at $0.6450, the Feb 4 trough.

- Friday's 2-Yr inflation exp. will conclude NZ data releases for this week.