Westpac recommend a short NZD/USD position,....>

KIWI: Westpac recommend a short NZD/USD position, with an entry point at

$0.6850.

- Westpac write that "the RBNZ's dovish shift earlier this week was a major

surprise for markets and forecasters. Fundamental developments didn't

necessarily warrant such an abrupt shift but concerns the NZD could rise further

appeared to be a major decision factor. The RBNZ has signalled its aversion to

currency strength, and we expect that to remain a key element of its dovish

stance going forward. The US dollar has priced in not only a lengthy Fed pause

but also a rate cut within a year. A positive US economic data pulse may be

clearer once we see Q2 numbers, and that may pare Fed pricing, supporting the US

dollar. NZD/USD fell sharply from $0.6925 in response to the RBNZ surprise, and

we are loathe to chasing, it but prefer selling into a (50%) corrective bounce."