Sinks Under Pressure From RBNZ's MPS

The RBNZ MPS & subsequent press conference put a decent bid into the kiwi, as policymakers tipped hat to the relative resilience of domestic economy (with caveats) and lifted the trough of their "unconstrained OCR track" by 90pp, signalling less of a need for adding stimulus, while Gov Orr refused to make commitments on negative interest rates. AUD/NZD went offered on the back of resultant paring of RBNZ easing bets, registering a low print of NZ$1.0596, just above key support from Oct 30 low of NZ$1.0595.

• The rate now changes hands at NZ$1.0611, 52 pips worse off. A clean break below the NZ$1.0595 figure flagged before would shift focus to Jul 10 multi-month trough at NZ$1.0566. On the flip side, bulls need to reclaim the Fibo retracement level, which capped gains on Nov 5 & 6, to regain some poise.