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FOREX

USD Ebbs in Extension of Post-Fed Trend

EURIBOR

EURIBOR FIX

EUROZONE DATA

EZ Economic Sentiment At Record High in July

BUNDS

Large risk reversal

BUNDS

Block trade

KIWI
KIWI: ###POV: DOWNSIDE RISKS FOR NZDUSD AHEAD OF CPI DATA
- Having failed to break the 0.7400 area, geopolitical and domestic factors are
starting to weigh ahead of the NZ CPI release.
- Seasonal changes are expected to show a sharp fall in International airfares
(usually 10% q/q) which would make a 0.2% contribution, reversing the trend from
December.
- A number of banks have put out trade recommendations to short the NZD against
a basket of currencies.
- Soft China equities and mixed data release of late have started to point
toward a slowdown in growth which could further pressure the NZD.
- The IMF said that current monetary policy is appropriately expansionary and
warned of downside risks to NZ growth over the medium-term.
- NZDUSD has touched pullback lows of 0.7311 with next support seen at 0.7285/75
(50-dma, 50% $0.7154-0.7395).