NZDUSD has recovered from a brief knee jerk....>

KIWI: NZDUSD has recovered from a brief knee jerk lower which came in the wake

of the questions posed by the events at the weekend's G7 summit, which resulted

in an early session low of 0.7012, although the cross has recovered to last deal

at ~0.7040, supported by a pullback in the USD.

- The NZD had little reaction to decent enough Q1 NZ manufacturing data, with

focus well and truly on next week's GDP release. Highlights this week include Q2

NZ Westpac consumer confidence data.

- NZDUSD's topside follow through remains lacking with bulls needing a close

above the May 04 high (0.7059) to confirm initial focus on 0.7091-0.7200 where

the 55, 100 & 200-DMAs and 21, 55, 100 & 200-WMAs are situated. Initial support

is noted at hourly resistance from June 04 (0.6993) with bears needing a close

below to gain breathing room.