NZD consolidates overnight gains following.....>

KIWI: NZD consolidates overnight gains following the less dovish-than-expected

RBNZ meeting. The Bank kept its policy rate unchanged at 1.75%, lowered GDP/CPI

forecasts and signalled it expects to keep rates on hold through 2019-20, before

hiking rates in early 2021. The RBNZ's decision disappointed doves and with the

market caught short, squeezed 100+ pips on initial react. NZDUSD is currently

registering gains of 1.50% at the European crossover, last at $0.6838. Near-term

resistance is seen at $0.6857/90 from the 61.8%/76.4% retracement levels of

$0.6942-0.6720. A break above $0.69 would reignite momentum targeting the Feb 1

high at $0.6942. AUDNZD was a big mover on the session, touching extended

pullback lows of NZ$1.0397. Support from the 50% fibo of NZ$1.0106-1.0670 at

NZ$1.0388 contained, with the cross extending to NZ$1.0418 at typing. NZDJPY

breached the 100 & 200-dma's (Y75.12/15) to Y75.80 and holds firm at typing.

While EURNZD witnessed a sharp fall to react lows of NZ$1.6546. This brings the

Feb 6 low at NZ$1.6517 into view, ahead of pivotal support at NZ$1.6478.