Soft NZ GDP pressured overnight after the......>

KIWI: Soft NZ GDP pressured overnight after the headline came in well under

expectations at 0.3% Q/Q. The biggest slowdown came in the services sector, with

easing also seen in mfg & construction. Below GDP growth and low wage growth

should keep the RBNZ's outlook dovish with Barclays putting out a sell trade

recommendation on the back of it. Entry NZ$0.6780, stop NZS$0.6893, targeting

NZ$0.6440. Recovery efforts remain shallow at the European crossover with NZD

sitting at the bottom of G10, last $0.NZ6737. A break of the Asia low

(NZ$0.6725) opens the 50% retracement level of NZ$0.6425-0.6970 & Sep 26 high at

NZ$0.6698/0.6696, opening a move toward the 100-dma at NZ$0.6670. NZDJPY moved

through the 200-dma to print 2-month lows of Y75.24. Bears target a break of the

100-dma at Y74.98 to extend the downtrend.