The RBNZ left its OCR unchanged, but noted....>

FOREX: The RBNZ left its OCR unchanged, but noted that "a lower OCR may be

needed over time" given downside risks, while minutes revealed that a rate cut

was put to the discussion at today's meeting. NZD/USD took a nosedive initially,

but promptly regained poise due to the lack of a firm commitment to a rate cut

at the August meeting. However, the rate ebbed off of highs as gains were capped

by the subsequent front-loading of the RBNZ easing forecast by the ANZ, as well

as technical resistance provided by Tuesday's peak & the 38.2% fibo retracement

of the slide from $0.6939 to the YtD low. NZD remains the best G10 performer.

- JPY turned a blind eye to the softening of major regional equity indices,

including the Nikkei 225, and faltered vs. all of its G10 peers.

- USD/CNH extended its uptrend, hitting a fresh weekly high, as investors look

to the upcoming G20 summit with caution, while less dovish Fedspeak aided USD.

- U.S. durable good orders, French and German consumer confidence tallies and

Norwegian AKU unemployment take focus today. Speeches from RBNZ's Bascand, ECB's

Mersch and Fed's Daly are also due, while BoE's Carney, Cunliffe, Tenreyro and

Saunders will testify to lawmakers on the May Inflation Report.