The NZD benefitted from the RBNZ's sectoral...>

FOREX: The NZD benefitted from the RBNZ's sectoral inflation model accelerating

to a 7-Year high of 1.7% in Q2, after the official Q2 CPI print provided a

modest miss against exp. (although it matched the RBNZ's MPS projections).

NZD/USD has added around 50 pips, breaking the Jul 10 low ($0.6804) & the 21-DMA

($0.6809) to print at $0.6841. The next notable level of resistance is some way

off at $0.6882. AUD/NZD has breached the July 13 low ($NZ$1.0893), bears now

look to the 200-DMA (NZ$1.0861).

- The AUD crosses had little reaction as the RBA reinstated the line that the

next move in the cash rate would likely be up, rather than down, in the minutes

of the July MonPol meeting. AUD/USD has edged higher, alongside the NZD/USD

cross in the wake of the RBNZ's inflation model, although with an understandable

lag. GBP ignored the passage of the amended Customs Union Bill, while JPY

struggled for any real conviction, despite a move higher in the JPY crosses,

which was quickly retraced.

- Focus on Tuesday turns to UK jobs numbers and the first part of Fed Chair

Powell's semi-annual testimony.