The RBNZ sent NZD/USD spinning on Wednesday,...>

KIWI: The RBNZ sent NZD/USD spinning on Wednesday, as the MPC reaffirmed its

preparedness to cut rates if needed and noted that a negative OCR is on the

cards, while works on the logistics are ongoing. Renewed demand for the

greenback, seen as Fed Chair Powell echoed the recent rhetoric of his colleagues

& talked down potential for negative rates in the U.S., kept a lid on recovery

attempts and NZD/USD extended losses into the close. The rate sank through the

50-DMA & support from May 7 low in the process.

- RBNZ Governor Orr testified to lawmakers this morning and the highlight of his

speech was the remark that the size of the QE programme, yesterday boosted to

NZ$60bn, "is a cap not a target".

- FinMin Robertson delivers the budget today. PM Ardern noted that the gov't's

main focus are jobs. Looking further afield, BusinessNZ M'fing PMI hits Friday.

- NZD/USD trades flat at $0.5990. Wednesday's drop supports the bearish case,

opening up Apr 23 low of $0.5911. A break here would reaffirm their dominance &

expose Apr 3 low of $0.5844. Bulls need to reclaim May 11 high of $0.6156 to

return the focus to $0.6176, the peak of Apr 30.