NZD took a hit as the RBNZ delivered its.......>

KIWI: NZD took a hit as the RBNZ delivered its monetary policy decision, leaving

the OCR unchanged at 0.25%, in line with expectations. As flagged in our

preview, main focus was on the central bank's rhetoric. The RBNZ reaffirmed its

readiness to add monetary stimulus if necessary. The MPC discussed the

effectiveness of the LSAP programme and although they chose not to expand it

now, they judged tat "it is no yet clear whether the monetary stimulus delivered

to date is sufficient". Re: NZD, policymakers explicitly flagged their worry

about the pressure from a stronger currency to export earnings.

- NZD/USD bottomed out at $0.6451 and last trades -18 pips at $0.6474. Bears

continue to target Jun 22 low of $0.6377.

- AUD/NZD sits at NZ$1.0731, 56 pips better off & shy of the reaction high. It

punched through resistance from Jun 16 peak at NZ$1.0729, which shifts bullish

focus to Jun 2 high of NZ$1.0881.

- NZD/JPY has shed 14 pips and last trades at Y69.02. A break below the 200-DMA

at Y68.56 would expose Jun 22 low of Y68.11, a key near-term support.