NZD/USD retains downside potential, with a sustained period below 0.7200 required to add technical confidence to the view, according to Imre Speizer, Research Analyst at Westpac.

“We suspect the uncertainty regarding the outcome of the election on 23 Sep has been weighing on the NZD, citing two pieces of evidence. First, NZD/USD usually moves inversely to the broad USD index, unless there are significant NZ factors at play. The USD index is falling from mid-August, but NZD/USD not following suit and falling instead. Second, our fair value model shows NZD/USD shifted from fair to 3c undervalued from mid-August. The first poll showing Labour surging towards parity with Nationals was on ... 17 August.”</s>WASHINGTON (Reuters) - The U.S. State Department has approved arms sales packages worth more than $3.8 billion to Bahrain including F-16 jets, upgrades, missiles and patrol boats, the Pentagon said on Friday.

The approvals coincide with the State Department’s notification to Congress, which had held up a similar arms deal last year over human rights concerns.

The proposed sales include 19 F-16V jets made by Lockheed Martin Corp which could have a value of up to $2.7 billion, the Pentagon said.

Other potential sales approved Friday include two 35 meter (114 feet) patrol boats with machine guns, 221 anti-tank missiles made by Raytheon Co and $1.8 billion worth of upgrades to Bahrain’s existing fleet of F-16 jets, the Pentagon said in separate statements.

In May, U.S. President Donald Trump said Washington’s relations with Bahrain would improve, after meeting with the king of the Gulf Arab state during a visit to Saudi Arabia.

However in June, U.S. Senator Bob Corker, the chairman of the Senate Foreign Relations Committee, said he would block arms sales to members of the Gulf Cooperation Council, including Bahrain, until they made progress in resolving a simmering dispute with Qatar.

But a U.S. official, who spoke on condition of anonymity earlier on Friday, said the proposed sales were cleared by the Senate Foreign Relations and House Foreign Affairs Committees through the regular “tiered review process” which precedes this formal notification.

The U.S. official also said the United States has regular discussions with Bahrain on human rights and political reform and continues to urge its government to pursue efforts that will enhance regional security.</s>The US State Department approved more than $3.8 billion in military sales to the government of Bahrain, which includes F-16 aircraft upgrades, TOW missiles and patrol boats, the Defense Security Cooperation Agency (DSCA) said in a press release, Sputnik reported.

"The State Department has made a determination approving a possible Foreign Military Sale to the Government of Bahrain for F-16V aircraft with support," the release said on Friday. "The estimated cost is $2.785 billion."

The arms sales also include an upgrade of Bahrain’s Lockheed Martin F-16 jets estimated at a total cost of $1.082 billion, the release stated.

Other sales include $27 million for TOW missiles and $60.25 million for 35 Meter Fast Patrol Boats, the release added.

The arms sales are meant to enhance Bahrain’s capability to deter regional threats and strengthen its homeland defenses, the release stated.</s>WASHINGTON (Sputnik) — The US State Department approved more than $3.8 billion in military sales to the government of Bahrain, which includes F-16 aircraft upgrades, TOW missiles and patrol boats, the Defense Security Cooperation Agency (DSCA) said in a press release.

"The State Department has made a determination approving a possible Foreign Military Sale to the Government of Bahrain for F-16V aircraft with support," the release said on Friday. "The estimated cost is $2.785 billion."

Other sales include $27 million for TOW missiles and $60.25 million for 35 Meter Fast Patrol Boats, the release added.

The arms sales are meant to enhance Bahrain’s capability to deter regional threats and strengthen its homeland defenses, the release stated.</s>The US State Department has approved $3.8 billion in weapons sales to the tiny island nation of Bahrain. The Pentagon confirmed the approval and the State Department has notified Congress, who held up a similar sale last year over Bahrain’s many, many human rights problems.

The $3.8 billion sale is almost entirely going to Lockheed Martin, who will be providing 19 F-16V fighter jets, along with substantial upgrades to the nation’s existing fleet of F-16s. Raytheon will be selling 221 anti-tank missiles to go with it.

Sales to Bahrain were supposed to be suspended, as Sen. Bob Corker (R – TN) had threatened to hold them all up until they resolved tensions with Qatar. In the end, however, Congress is said to have signed off through normal channels.

State Department officials insist that the US is continuing to discuss human rights issues with Bahrain, and is encouraging reform. That historically has never really been the case, as the US has largely turned a blind eye to Bahrain’s abuse of its Shi’ite population, viewing it as a cost of getting to host a major naval base there.

Bahrain had earlier today condemned Amnesty International for a report detailing their detention and torture of Shi’ite dissidents. Bahrain didn’t provide any details on their problem with the report, just that they “regretted” it being published.
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The U.S. State Department has approved a package of potential arms sales worth more than USD$ 3.8 billion to the Kingdom of Bahrain including F-16 jets, upgrades, missiles and patrol boats.