NZD was the big mover, reacting to the........>

FOREX: NZD was the big mover, reacting to the monetary policy announcement from

the RBNZ. With the in-line decision to keep the OCR unchanged at 0.25% and

expand the QE programme to NZ$60bn, the focus fell on forward guidance. The kiwi

popped higher initially as NZ central bank reaffirmed its forecast that the OCR

will stay where it is through Q1 2021. That modest blip was followed by a

nosedive, as the RBNZ noted that it is working with banks on the operationality

of negative rates, which will be an option in future, adding that it is prepared

to cut the OCR further if needed. NZD/USD tumbled through its 50-DMA, while

AUD/NZD cleared a key resistance from Apr 28 high of NZ$1.0752.

- Other than that, it was a fairly sedate session. AUD was pressured by

cross-currents from across the ditch & JPY also struggled for any impetus.

- USD/KRW opened higher, but pared gains thereafter. South Korea reported an

above-forecast unemployment rate, underpinned by weak breakdown data.

- UK monthly activity indicators & flash quarterly GDP data, U.S. PPI, EZ

industrial output & Swedish CPI take focus from here. Speaker slate features Fed

Chair Powell, as well as ECB's Lane & de Guindos.