NZD/USD trades almost unchanged at $0.6335.....>

KIWI: NZD/USD trades almost unchanged at $0.6335 in the lead up to the RBNZ

monetary policy decision, accompanied by the quarterly MPS and a presser with

Governor Orr. Little reaction noted to New Zealand's Food Price Index, which

declined 0.3% after coming in flat in Sep.

- The rate slid sharply in Tuesday's Asia-Pac hours as NZ Q4 2-Year Inflation

Expectation fell to 1.80% from 1.86%. The figure was published on the eve of the

RBNZ decision and had been known to the MPC in advance, which prompted Westpac

to revise their call (they now exp. a 25bp cut to the OCR today). The kiwi

retained a softer feel and failed to stage any material recovery thereafter.

- A fall under the Nov 8 trough at $0.6322 would clear the way towards the 61.8%

retracement of the Oct 1 - Nov 4 rally at $0.6304. That said, yesterday's close

under a trendline support turns the level, today at $0.6336, into the nearest

resistance. A firm push above would open up the $0.6400 figure.

- Our RBNZ preview can be accessed at http://tiny.cc/RBNZNov.

- RBNZ Gov Orr will speak again tomorrow, testifying to lawmakers. BusinessNZ

m'fing PMI hits on Friday.