Archived IMT (2008.09.10)

RBNZ INTEREST RATE ANNOUNCEMENT due at 5 pm EST (9 pm GMT). A 25-bp rate cut to 7.75% is widely expected. Today's 34% decline in New Zealand home sales to a 26-year low in might add to rumblings about a possible 50-bp rate cut but the recent currency damage will likely prevent RBNZ from going with 50-bps.

NZDUSD is expected to resume declines towards the 0.66 figure after 3 days of consolidation around 0.67. Forex traders ay push AUDNZD higher to towards 1.22 and onto the 1.23 resistance. NZDJPY is apt to prolong selling into 70 and 69.20.