The kiwi appreciated in reaction to a beat.....>

KIWI: The kiwi appreciated in reaction to a beat in New Zealand's Q3 CPI. On a

quarterly basis, inflation accelerated to +0.7% against the prior +0.6% and mkt

projections for pace staying unchanged. The Y/Y figure decelerated to +1.5% from

+1.7% seen in Q2, but topped market expectations of +1.4%. Both figures overshot

RBNZ forecasts of +0.5% Q/Q and +1.3% (as per the most recent MPS).

- NZD/USD last deals at $0.6303, 8 pips higher but off an earlier high of

$0.6320. Bulls look for a push above $0.6327/28, the high of Sep 26 & Oct 8/50%

retracement of the Sep 12 - Oct 1 slide. Above opens $0.6353-57, which hosts the

50-DMA, the high of Oct 11 & the 61.8% retracement of that range at $0.6357.

Bears would like to see a throwback below the Oct 10 trough at $0.6277.

- RBNZ's Bascand speaks at writing (text available at http://tiny.cc/Bascand).

- Following Tuesday's uneventful Asia-Pac session, the pair slid through EU

hours amid uncertainty re: the outlook for U.S.-China trade relations. A softer

USD allowed some recovery into the WMR fix, but the rate remained in the red.

- There are no more NZ data releases this week, but it will be worth watching

Chinese Q3 GDP and monthly activity indicators, which come out on Friday.