The RBNZ's decision to cut its OCR by 25bp.....>

KIWI: The RBNZ's decision to cut its OCR by 25bp to the new record low of 1.50%

sent the kiwi tumbling across the G10 currency board. NZD/USD touched a fresh

YTD low of $0.6527 in the immediate reaction, before paring the bulk of its

earlier losses. Although the RBNZ's decision was in line with forecasts of the

majority of economists, the OIS had priced in a ~35% probability of a cut ahead

of the announcement.

- The RBNZ said that a cut was "necessary to support the outlook for employment

and inflation" consistent with its policy objectives, while pointing to trade

concerns & slowing global growth. During subsequent presser, RBNZ Gov Orr noted

that the RBNZ is "able to observe the data," adding that the "forecast track is

a slightly lower path than just one cut," but uncertainties are large.

- NZD/USD last trades at $0.6590, 14 pips worse off. Bears look for a dip below

the Apr 25 low/Jan 3 low of $0.6580/75, which would encourage them to attempt a

run at $0.6527, where the rate bottomed today. Conversely, bulls need to clear

$0.6600 before challenging the downtrend resistance, which comes in at $0.6636.

- RBNZ Gov Orr will appear before lawmakers tomorrow.