RBNZ lowers OCR to 2.25% from 2.50%

Few analysts and traders were expecting the RBNZ to cut rates. The surprise move sent NZD/USD to 0.6653 from 0.6775 before the announcement.

The central bank compounded the selling by warning of further rate cuts and saying a further decline in the currency is appropriate.

Trendline support from the January low is suddenly in play.

Another chart to take a look at is AUD/NZD. I noted the wedge giving way earlier this week and now the November high has broken as well.