Late NY Wednesday RBNZ announced it would.....>

FOREX: Late NY Wednesday RBNZ announced it would keep rates unchanged but

accompanied it with hawkish rhetoric, inflation target to be hit sooner than

expected so may need to raise rates faster than previously forecast, which

boosted Nzd. In Aud, China PPI tended to support but countered by release of

weaker than forecast Australian Home Loans. Overall the Asian market was fairly

subdued with attention drawn toward equity market action. Ahead of Europe Nikkei

touched fresh highs (since Jan 1992), the move up took Usd/Jpy back above

Y114.00 though this proved short lived as rate tracked the sharp reversal in

Nikkei into the European open. Profit take sales were mainly cited for the

corrective pull back, some suggested US Trump signing of a large

trade/investment deal with China could have provided the catalyst (seen

detrimental for US/Japan trade?). Usd/Jpy was knocked down to Y113.40 from

Y114.07 and held heavy in late morning trade. Early Europe recovery in Eur/Usd

to $1.1616 on the Usd/Jpy move then reversed as Eur/Jpy slippage weighed back to

take rate down to $1.1590. Early Europe sterling recovery eventually faded, the

pound pared gains to retest Wednesday lows, driven by Gbp/Jpy pull back.