AUSSIE-YEN: AUD/JPY gave away 76 pips and last.......>

AUSSIE-YEN: AUD/JPY gave away 76 pips and last trades at Y71.21. Bears look for

a drop below Y71.00 towards the Jan 3 flash crash low of Y70.64. A recovery of

the lower Bollinger band (2%) at Y71.42 would alleviate some pressure from the

bulls, who would turn their focus to the Y72.00 mark, which was tested and

briefly penetrated in the run-up to today's RBNZ MonPol decision.

- After trading sideways from the off, the rate tumbled as the Aussie took a hit

from a dovish surprise at the RBNZ policy meeting. New Zealand's central bank

trimmed its Official Cash Rate by 50bps, even as consensus called for a 25bps

cut, inflicting severe wounds on Antipodean FX.

- Subsequent press conference with RBNZ Gov Orr only pleased the doves, as the

Governor refused to rule out further easing and mentioned looking into a variety

of policy options, including unconventional tools.

- This occurred against the backdrop of broader risk-off flows, provoked by

speculation re: today's PBoC fix and its actual value, while a softer Nikkei 225

lifted the yen vs. its G10 peers.