NZD/USD has added 9 pips, last deals at........>

KIWI: NZD/USD has added 9 pips, last deals at $0.6455. BBG ran a headline from

China's state-owned newspaper noting that China is considering "new measures" to

stabilise trade, but the move in NZD/USD started slightly before that.

- The RBNZ put NZD firmly on the defensive yesterday, delivering a combination

of an unexp. 50bps OCR cut (consensus was for a 25bps reduction) & dovish

rhetoric at the subsequent presser, which saw mentions of looking into

unconventional policy tools. NZD/USD printed its worst levels since Jan 2016.

- The pair moved away from lows thereafter, but didn't manage to shake off

weakness. It finished 79 pips lower, while NZD remained the worst G10 performer.

- RBNZ Gov Orr testified to lawmakers earlier today. He criticised some banks

for "scaring the public" over the proposed increase in capital requirements &

reiterated that negative rates are in the realm of possibility. Elsewhere, RBNZ

Asst Gov Hawkesby noted that in the wake of yesterday's rate cut, the central

bank will be looking for an increase in inflation expectations in particular.

- Bears target $0.6525, the low of Oct 8 2018; a break here opens yesterday's

low of $0.6378. Bulls look to retake $0.6500 to improve their outlook.