Kiwi Shakes Off Modest Strength As Hawkesby Wants To Go Hard, Go Early

NZD/USD has dived off its session high of $0.6664 as RBNZ Asst Gov Hawkesby said that New Zealand's central bank wants to "go hard, go early" on policy, days after RBNZ Chief Economist spoke to the same effect, outlining the Bank's least regrets approach. Hawkesby took note of some positive surprises in domestic economic data, but stressed that global risks remain skewed to the downside, which underpins the need to continue providing monetary stimulus. NZD/USD wiped out its earlier modest gains and last trades at $0.6652, virtually unchanged on the day. Familiar technical levels remain in play.

• AUD/NZD popped higher and last sits -3 pips at NZ$1.0766, as Hawkesby's remarks pushed it away from session lows. Topside focus falls on Oct 9 high of NZ$1.0897, while next (key) support is located at NZ$1.0718, which represents Sep 25 low.
• NZD/JPY dipped into negative territory after topping out at Y70.28 before NZ central banker took the floor. The pair last sits -6 pips at Y70.08. A fall through Oct 8 low of Y69.41 would open up Sep 24 low/200-DMA at Y68.64/62. Bulls need a clearance of Oct 9 high of Y70.51 before targeting Sep 18/15 highs of Y71.20/22.