NZD/USD rallied ~110 pips overnight and last...>

KIWI: NZD/USD rallied ~110 pips overnight and last deals at $0.6845, in the wake

of the RBNZ MonPol decision, which saw the Bank keep its policy rate unch. at

1.75%, while it flattened out its rate track, with a hike now projected for Q121

vs. Q320 previously. The RBNZ's decision disappointed the doves, who were

looking for more focus on the the need for monetary easing. 

- NZD garnered additional strength as RBNZ Gov Orr stated that "chances of a

rate cut have not increased, the outlook is balanced re: the next move being up

or down" during his post-MonPol presser. Orr went on to note that a rate cut may

be needed if growth doesn't pick up. 

- BBG's WIRP function now prices a near 30% chance of at least one 25bp cut by

year end, after pricing a ~55% chance of such an occurrence ahead of the

meeting. 

- $0.6887, which represents the upper 1.0% 10-DMA envelope, provides the initial

bullish target. A break above would bring the Feb 6/5 high of $0.6805/06 into

play. Meanwhile, bears need a fall through the 21-DMA at $0.6805 before

attempting a breach of the psychological $0.6800 level.