NZD tumbles after RBNZ sizeable OCR downgrade and discussions of a 50bp cut

NZD tumbles after RBNZ sizeable OCR downgrade and discussions of a 50bp cut

• A lot more dovish than most had expected here for the RBNZ

The NZD is tumbling after the RBNZ surprised markets with a chunky downside revision to the OCR projection.

The Minutes revealed that there was also discussions of a 50 basis point cut, but the board decided on a 25 move.

At the time of writing, the NZDUSD has taken out big support around the 0.8550 mark and is trading at its lowest level since April.