NZ 2-yr inflation expectations, released.......>

KIWI: NZ 2-yr inflation expectations, released overnight, showed a fall to 1.8%,

from last 1.86%, which placed the Kiwi under pressure as a local bank adjusted

calls for a 25bp cut at tonight's RBNZ meeting. However, one bank suggests that

it might not be a dovish cut and would look to buy NZD on dips if this proves to

be the case. Rate did drop to $0.6326 post data, recovering to $0.6345 in early

Europe. Fresh sellers have emerged to press rate back to $0.6330. One Asian

trader suggested support into $0.6320, a break to expose $0.6300, adding that a

break here could prompt some break out types to sell. Rate currently trades

around $0.6334.