Yen Gains Amid Fresh Political Uncertainty In Japan, NZD Holding Losses Post RBNZ Cut

NZD/USD weakness and yen gains are the main G10 FX focus points as the Wednesday session unfolds. Kiwi weakness follows the RBNZ decision to cut rates, while Japan domestic news is dominated by Prime Minister Kishida's decision not to seek a second term.

• NZD/USD got to lows of 0.6026 post the RBNZ cut, which wasn't fully priced by the market. The outlook, based off RBNZ projections sees more cuts being delivered, albeit data dependent. The central bank gave a particularly pessimistic assessment of the economy for H2 this year (expected to see a recession)
• Lows for NZD came in around the 50-day EMA. Further weakness could see the 0.6000 figure level challenged. The AUD/NZD cross got close to the 1.1000 handle post the decision, but sits slightly lower now, last 1.0975.
• Japan PM Kishida's decision not to seek a second term has injected fresh uncertainty into the local Japan outlook. Japan equities are comfortably off earlier highs, with uncertainty around the local political/policy agenda outlook a likely factor. The decision follows a long run of low approval ratings for the PM.
• For USD/JPY we are back to 146.35, after testing above 147.00 in the first part of trade. NZD/JPY is back to 88.40, nearly 1% weaker for the session. Earlier higher were at 89.5. Coming up shortly we have RBNZ Governor Orr's press conference.