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The NZD initially knee-jerked higher as the....>

KIWI
KIWI: The NZD initially knee-jerked higher as the RBNZ removed its language re:
next move in the cash rate could be up or down, now stressing data dependence,
before retracing.
- The Bank's inflation outlook has been revised slightly higher, although the
Bank highlighted its willingness to look through an uptick in inflation driven
by higher fuel prices.
- The Bank still expects GDP to move higher in 2019, highlighting temporary
factors in Q2, with business confidence and investment still a concern, pointing
to downside risks to its growth projections.
- Bank's OCR track now looking for a hike in Q2 2020 (prev. Q3 2020).
- NZD/USD back to pre-announcement levels, last $0.6785, after topping out at
$0.6814 on the initial reaction to the decision. Bulls continue to look for a
close above $0.6800, with bears needing a move below the Nov 02 high at $0.6690.
- Focus now move's to RBNZ Gov. Orr's press conference.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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