Kiwi takes flight as RBNZ rule out rate cut...>

FOREX: Kiwi takes flight as RBNZ rule out rate cut

- NZD surged to the top of the G10 table Wednesday as the RBNZ left policy on

hold, but struck a distinctly hawkish tone in the accompanying statement. The

MPC forecast that the OCR will remain unchanged this year, with focus shifting

to fiscal support as well as the assumption that the fallout from the

coronavirus outbreak will be short-lived. They left open the possibility of

adjusting policy if the Covid-19 inflicts deeper economic wounds, but noted that

they have time to assess new evidence. NZD/USD rallied well, but stopped short

of breaking above the $0.6477 100-dma.

- JPY sits at the other end of the table and has hit new February lows against

the greenback as risk appetite firmed further in Asia-Pac trade. US equity

futures sit just below the alltime highs printed yesterday.

- The data calendar is a particularly quiet one Wednesday with no releases of

note. This should keep focus on the speaker slate, with appearances due from

Fed's Powell, who testifies in front of the Senate Banking Committee as well as

Fed's Harker who speaks on the economic outlook.