There was no reaction in NZD/USD as NZ.........>

KIWI: There was no reaction in NZD/USD as NZ recorded a trade deficit of

NZ$1.56bn in September vs. estimates of NZ$1.37bn, with the rate coming under

some modest pressure via AUD/NZD flows after Fitch affirmed Australia at AAA,

outlook stable.

- NZD/USD trades below Friday's low ($0.6524) at $0.6520 last, after having a

look at $0.6500 overnight, with bears now eyeing the figure and any move lower

bringing the YtD low ($0.6425) back into focus. Conversely, bulls hope to retake

the 50-DMA ($0.6588), which would allow them to focus on Friday's high

($0.6607).

- AUD/NZD last deals at NZ$1.0845, back above the 200-DMA (NZ$1.0829), which now

acts as initial support. Bulls now look to the October 19 high (NZ$1.0875),

followed by NZ$1.0900 and the 100-DMA (NZ$1.0903). Downside momentum in the rate

has faded over the last couple of sessions, with the catalyst for the recent

jolt lower seemingly coming in the form of the stronger than exp. Q3 NZ CPI

reading, released earlier this month. Next week's Q3 AU CPI print will be key.