NZD/USD's advance failed to result in a........>

KIWI: NZD/USD's advance failed to result in a breach of the $0.6500 barrier and

the rate continues to operate south of the round figure. It last sits at

$0.6488, 8 pips better off. A break above would bring into play $0.6536, the

38.2% fibo retracement of the Jul-Aug slide. Bears look for a retreat through

the Oct 8 2018 low/lower Bollinger band (2%) at $0.6425/22.

- The pair started the session on the back foot, spiking lower to $0.6463 on the

back of a BBG story re: the U.S. holding off on licenses for U.S. firms wanting

to restart business with Huawei. Early losses were wiped out, however, as RBNZ

Gov Orr said that NZ is "in a great starting position" to face increasing

headwinds, while the FX rate remains competitive on the average basis.

- The rate extended gains later on, peaking at $0.6495. RBNZ Dep Gov Bascand

said that "there is some probability we'll have to go lower," adding that an

above-potential growth is needed to boost inflation. Otherwise, "we'd have to

reconsider where we would get the capacity pressure that would raise inflation."

- NZ highlights next week include domestic FPI (Tuesday) & BusinessNZ m'fing PMI

(Friday).