Forex News Regional stock markets likely to have positive cue after Wall Street's mild gains overnight, fall in oil prices below $125/bbl; strength in U.S. financial stocks may lift their Asian peers. Also, concerns about financial sector troubles could be eased after U.S. House of Representatives pass broad package of housing-related items; legislation includes $300 billion program to refinance troubled mortgages with federal insurance, new regulator for Fannie, Freddie, overhaul of Federal Housing Administration; bill now awaits Senate vote. USD likely to maintain positive tone as risk appetite improves, lower oil, hawkish comments from Philadelphia Fed's Plosser; after Tuesday's speech which highlighting worries over inflation, he reiterated those concerns Wednesday, suggesting in Bloomberg television interview that rates need to be raised sooner rather later.
USD/JPY at 107.93 vs 107.85 late NY, EUR/USD at 1.5692 vs 1.5690, EUR/JPY at 169.37 vs 169.25. RBNZ surprises markets by cutting official cash rate to 8.0% from 8.25%, first cut since July 2003, indicates further easing on the cards if domestic economy continues to slow; NZD/USD slumps, last 0.7450 from 0.7495 before decision; ABN Amro's Greg Gibbs indicates likely medium-term target now 0.7200. NZD/JPY crosses likely to be pressured down. On data front, Japan provisional trade statistics at 2350 GMT, Hong Kong trade at 0815 GMT. Later there's Germany's Ifo. UK retail sales, US jobless claims, existing home sales. New York Fed Pres Geithner, SEC Chairman Cox testify before House panel, BoE deputy governor Bean speaks.
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