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

KIWI: 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.

- The pair last trades bang on the aforementioned $0.6676, with not much support

below the overnight low ($0.6664) until the Mar 16 2016 low ($0.6576).