The NZD is up by more than 1% as the RBNZ leaves its OCR unchanged
- RBNZ announce cash rate on hold - surprise decision
- WSJ report tariffs still a major hurdle in US & China reaching a trade deal
Those were the two major stories in Asia Pacific trading as the kiwi surged on the surprise decision while risk trades stayed cautious/defensive as tariffs remain a thorn in the side of US-China trade talks.
The yen was also initially higher on the earlier news but has since given up some of its gains as USD/JPY creeps back towards the 109.00 handle.
Meanwhile, the dollar remains overall steady with little movement seen against the likes of the euro and pound to start the day.
The aussie is caught between two minds as it is indirectly benefiting from the boost in the kiwi but is seen struggling due to trade concerns. As such, AUD/USD sits more flat around 0.6840-45 as we begin the session.
Looking ahead, trade headlines will once again be something that markets will be keenly eyeing this week but there's also Fed chair Powell due to speak later in US trading.
