The NZD was the underperformer as RBNZ Gov....>

FOREX: The NZD was the underperformer as RBNZ Gov. Orr began the his first

MonPol statement by noting that the outlook for MonPol is for the OCR to remain

at 1.75% for "some time to come" along with equally balanced risks re: a move up

or down, but ended by stating the OCR will remain at this level for a

"considerable period." The RBNZ trimmed its CPI exp., and now looks for CPI to

hit 2.0% in Q420; prev. Q320. The Bank's OCR projections now look for a hike in

Q319; prev Q219. The path for exchange rate was slightly lowered. NZDUSD hit

fresh YtD lows and trades at ~0.6915 last, while AUDNZD broke above its 100-DMA.

- Elsewhere the USD backed off as US 10-Year Tsy yields crossed back below

3.00%, which allowed GBP, EUR & CAD to move higher vs. USD, while the AUD & JPY

operated around unchanged levels. JPY supply was once again noted around the

Tokyo fix, although the move wasn't as large as yesterday's.

- The main risk event on Thursday will be the BoE MonPol decision, with a string

of weak UK data leaving most exp. the BoE to stand pat with a 7-2 vote, MNI

PINCH is pricing a 12% chance of a hike today. Elsewhere we will get US CPI

data.