The kiwi surged as the RBNZ expectedly left...>

FOREX: The kiwi surged as the RBNZ expectedly left its OCR on hold, while

accompanying rhetoric struck some hawkish notes. The MPC forecast that the OCR

will remain unchanged this year, focused on the fiscal impact on the economy,

and assumed that the fallout from the coronavirus outbreak will be short-lived.

They left open the possibility of adjusting policy if the Covid-19 inflicts

deeper economic wounds, but noted that they have time to assess new evidence.

- AUD clung to the coattails of its Antipodean cousin, while JPY was the worst

G10 performer. Participants continued to weigh coronavirus updates, with RBA's

Heath & NZ FinMin Robertson pointing to associated risks.

- Asian EMFX mostly outperformed USD as hopes for coronavirus containment

supported risk appetite. KRW strengthened despite a surprise uptick in South

Korean unemployment rate. MYR softened in the lead-up to the local GDP release &

extended losses on the miss. PHP was aided by y'day's upgrade of Philippine

Fitch rating outlook to positive from neutral.

- Coming up later today we have a monetary policy decision from the Riksbank, EZ

industrial output and comments from ECB's Lane as well as Fed's Powell & Harker.