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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.

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