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NZD/USD takes a nosedive as the RBNZ...........>

KIWI
KIWI: NZD/USD takes a nosedive as the RBNZ unexpectedly cuts the OCR by 50bps,
defying consensus forecast of a 25bps cut. Per the accompanying statement, the
decision came as a result of deciding between a 50bps cut vs. a 25bps cut &
communicating an easing bias. The RBNZ noted that the cut expresses its
commitment to sustaining employment growth & pushing inflation towards the
mid-point of the target range.
- Re: yesterday's reassuring labour mkt report, members "welcomed the recent
employment and wage data but noted that private sector wage growth was subdued
despite businesses having difficulty finding labour."
- NZD/USD is extending losses after hitting a reaction low of $0.6446 and now
trades at $0.6442, 83 pips worse off. The pair hasn't operated at these levels
since Oct 2018. Bears look to the low of Oct 8 2018 at $0.6425, the worst level
touched over the last ~3.5 years. A break here would open the trendline support,
today at $0.6413. Bulls look to retake the lower Bollinger band (2%) at $0.6462
before taking aim at the $0.6500 mark.

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