New Zealand Treasury: RBNZ  could cut OCR  to minus 0.35% in a crisis

• NZD  lower onNew Zealand Treasury confirming RBNZ could cut OCR  to minus 0.35% in a crisis.
• AUD/NZD spikes to a high of 1.0512 and NZD/USD  to a low of 0.6438.  

New Zealand Treasury has come out and  confirmed that the  Reserve Bank of New Zealand, (RBNZ),  could cut OCR  to minus 0.35% in a crisis. This follows a series of similar reports from various origins of late which have pressured the NZD  lower, topped off by a surprise 50 basis point cut by the RBNZ)  earlier this month.  

Key notes:

• Sees asset purchases as less appealing tool.

FX implications:

This has sens the NZD/USD  lower on the session so far which is supporting AUD/NZD t a high of 1.0512.