Dovish RBNZ sees NZDUSD test the 0.69 area,...>

FOREX: Dovish RBNZ sees NZDUSD test the 0.69 area, BoE in focus

- The main story was caution by the RBNZ. The bank kept rates on hold as widely

expected, but dovish remarks that allowed the OCR rate to move up and down

rather than on hold, hit the Kiwi hard. The softer tone spilled over into Europe

with losses extending to $0.6903, before profit take demand provided a minor

relief rally.

- USDJPY pared overnight losses to briefly make a show above Y110.02. Should we

get there the 200-dma at Y110.20 will be eyed on a closing basis today.

- CAD was the strongest in G10, currently showing gains of 0.50%. The surge in

oil prices pressured USDCAD through C$1.2800 triggering stops on the move.

CADJPY took out the 100-dma to print Y86.06.

- GBP was largely rangebound with the BoE waiting in the background. Data was

mixed, despite a widening trade deficit it was said net trade will have likely

had a positive influence on Q1 GDP, GBPUSD squeezed to $1.3565. Main focus on

the BoE rate decision and QIR. Unchanged is widely expected, vote 7-2 with

downward revisions to GDP.