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NZD/USD surges after RBNZ holds rate at 3.5 percent

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NZD/USD edged up slightly in the Tokyo open today after surging post-Reserve Bank of New Zealand rate decision. The kiwi rallied to 0.7305 on news that the RBNZ held the main rate unchanged at 3.5 percent. The kiwi edged up to a high of 0.7328 in the Asian session. Investors were confident in buying the NZD since there was a lack of dovish forward guidance by the central bank and also there were forecasts of flat rates through till 2016.
AUDUSD opened in Asia at 0.7592 and traded a tight 0.7589-0.7611 range in the Australian jobs data release. The unemployment rate fell to 6.3 percent from 6.4 percent. Aussie rose up to 0.7637 but it quickly fell back to levels ahead of the release and then 0.7573 on broad USD strength. AUDNZD fell from 1.0531 pre-RBNZ through 1.0400 to 1.0368 before steadying.

USD/JPY traded slightly higher in Asia, from 121.39 to 121.67. But a further dip in US yields overnight from Monday highs slowed down the upside momentum. The Nikkei rally despite a mixed Wall Street performance though helped buoy the pair. In stark contrast, EURJPY remained on the back foot after an early push up to 128.26. It fell to 127.69 as EURUSD fell to a fresh 12-year low of 1.0494. NZDJPY rallied post-RBNZ, up from 87.30 to 89.04 before steadying.

EUR/USD continued the decline and extended even lower in Asia. It opened the session at 1.0547, with a small bounce to 1.0555 before eventually being knocked down to a fresh 12-year low of 1.0494. The pair then steadied back above 1.0500.
GBPUSD consolidated between 1.4912-50 in Asia following a drop to 1.4893 yesterday. EURGBP fell back from 0.7065 to 0.7035.
USDCHF slowly inched up from 1.0076 to 1.0128. EURCHF traded between 1.0626-45.

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