Archived IMT (2009.10.28)

RBNZ due in 30 mins (20:00 GMT) could escalate the selling in the high yielding currencies in the event that it leaves short term rates steady at 2.50%. While we could see more losses in NZD, AUD and NOK against USD, but there is more downside against JPY. NZDJPY and NZDUSD eye 65.30 and 0.7150, while AUDJPY is vulnerable to 78.90. USDJPY capped at 91.25-30 but is vulnerable to a Q3 GDP disappointment, which could drag it towards the 90.40 target.