The NZD formed the focal point of the.........>

FOREX: The NZD formed the focal point of the Asia-Pacific session after the RBNZ

left the OCR unch. as exp., but pushed the horizon that it exp. to hike the OCR

by 25bp out to Dec '20 (prev. Mar '20). Near term growth exp. were revised a

touch lower, near term inflation exp. a touch higher. The Bank stressed that it

will look through vol. in inflation, noting that risks to growth are tilted to

the downside, as Gov. Orr stated that if growth slows further below potential

then the RBNZ would cut the OCR. NZD made fresh lows after Fonterra noted that

it sees a variation from earnings guidance. Rate made fresh YtD lows, before

having a look below the May 2016 monthly low ($0.6676), with bears set to target

a close below this level to open up a move lower.

- AUD/USD cleared $0.7440, which may go some way to repairing the tech damage

caused over the past couple of days. Further layers of resistance are placed at

$0.7466/86.

- JPY made modest gains, with USD/JPY bears focused on the 55-DMA (Y110.73).

- USD/TRY moved back above TRY5.30, after reports stated that Turkey has not

committed to releasing the U.S. pastor held in custody.