NZD takes a hit after the RBNZ cuts its cash...>

KIWI: NZD takes a hit after the RBNZ cuts its cash rate by 25bp, as expected by

the majority of economists. The Bank noted that "a lower OCR is necessary to

support the outlook for employment and inflation consistent with its policy

remit. Global economic growth has slowed since mid-2018, easing demand for New

Zealand's goods and services. This lower global growth has prompted foreign

central banks to ease their monetary policy stances, supporting growth

prospects. However, there is uncertainty about the global economic outlook.

Trade concerns remain, while some other indicators suggest trading-partner

growth is stabilising." The Bank also noted that "employment is near its maximum

sustainable level. However, the outlook for employment growth is more subdued

and capacity pressure is expected to ease slightly in 2019. Consequently,

inflationary pressure is projected to rise only slowly." Risks to the inflation

outlook & sustainable employment were deemed broadly balanced. NZD/USD hits lows

of $0.6527 post release before bouncing to $0.6570, reclaiming the 76.4%

retracement of the move from $0.6425-$0.6970 in the process. A break of today's

intraday low would open up the November 1 2019 low at $0.6515.