NZD/USD spiked lower in reaction to the........>

KIWI: NZD/USD spiked lower in reaction to the monetary policy decision from the

RBNZ before meeting support just below $0.6600 and shooting back into positive

territory. The central bank left the OCR unchanged at 1.5%, but noted that "a

lower OCR may be needed over time" given downside risks.

- The initial dip was likely driven by the fact that, according to the minutes,

members "discussed whether additional monetary stimulus was necessary given

continued falls in global growth and subdued domestic demand." However, lack of

a firm commitment to a rate cut at the August meeting seemingly triggered an

immediate recovery.

- NZD/USD last trades at $0.6648, 8 pips better off. Rally was capped by the

38.2% fibo retracement of the slide from $0.6939 to the YtD low at $0.6658. A

break here would open the Jun 7 high of $0.6682. Bears look for a pullback

through the uptrend support at $0.6617 and towards the $0.6600 mark.

- NZD is the best G10 performer at typing.