Kiwi falls on surprisingly dovish RBNZ, USD steadies after FOMC

USD/JPY eased back after the FOMC rally that took it to 118.10. The Fed indicated it was on track for a rate hike mid-2015. The pair fell to 117.68 pre-European session open. The hourly Ichimoku cloud proved to be tough resistance. EUR/JPY bounced in sympathy from 132.40 to 133.31. The bias remains down but action looks to be confined for now to its ascending hourly Ichimoku cloud.

EUR/USD opened in Asia at 1.1288, down from 1.1350 post-FOMC. It barely moved, holding in a tight 1.1271-96 range as most of the market focus in the Asian session was on the RBNZ. The New Zealand central bank gave a dovish tone much to the market’s surprise, signalling possible rate cuts.

GBP/USD did little in Asia, holding between 1.5139-56. EUR/GBP traded soggy between 0.7444-57.

USD/CHF was bid alongside USD/JPY, up modestly from 0.9046 to 0.9116 and the market leery of possible SNB intervention. EUR/CHF rose a notch from 1.0213 to 1.0282 on similar sentiments.

AUD/USD opened in Asia at 0.7889 after selling off from 0.7995 late in the US day. USD was broadly bid post-FOMC (except against JPY). AUD was also dragged down post-dovish RBNZ. A dramatic, dovish turn in RBA expectations helped with the chance of a RBA ease Tuesday now @50% from below 10% just yesterday post-CPI data. Asia saw AUD/USD consolidate between 0.7883-0.7907. AUD/JPY demand out of Tokyo was supportive. AUD/USD support remains at 0.7850 but a break below targets 0.7700.

NZD/USD closed in New York at 0.7316, down @2% after the RBNZ surprised by raising the prospect of lower rates. Trading in Asia was subdued within a relatively tight 0.7316-48 range

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