The kiwi topped the G10 currency table.........>

KIWI: The kiwi topped the G10 currency table yesterday, with NZD/USD advancing

29 pips on the day. The rate currently sits at $0.6734, basically unchanged.

- Traders cited NZ yield differentials and the softening of expectations of a

rate cut from the RBNZ in August as reasons for NZD strength yesterday.

- Meanwhile, faltering USD made the pair lighter; poor housing starts/building

permits prints coupled with a series of downbeat corporate earnings reports out

of the U.S. damaged the greenback.

- On the topside, attention is drawn to the upper 1.0% 10-DMA envelope at

$0.6741. Above opens the 61.8% fibo retracement of the $0.6939-$0.6482 slide at

$0.6764. Conversely, bears eye a dip below the 200-DMA, which intersects at

$0.6720, where the rate peaked on Jul 3 & Jul 4. A break here would encourage

bears to target the round figure of $0.6700.

- Focus today falls on any spillover from across the Tasman, as Australia awaits

its labour mkt report. No more NZ releases are expected this week.