Antipodean Divergence Unfolds, Yuan Unfazed By PBOC Talk

The kiwi dollar traded on a slightly softer footing as participants reassessed RBNZ policy outlook ahead of this week's monetary policy meeting. That the Committee will raise the OCR on Wednesday seems like a done deal, but the debate on whether a 50bp remains on the table is ongoing. Separately, PM Ardern announced that New Zealand will shift away from lockdowns and into the traffic light system of managing Covid-19 on December 3.

• The Aussie topped the G10 scoreboard, diverging from its Antipodean cousin, as U.S. e-mini futures crept higher. AUD/NZD bounced off a fresh two-month low in early trade.
• The DXY advanced alongside U.S. Tsy yields, but struggled to threaten the prior trading day's high amid light macro headline flow.
• The yuan showed little interest in the latest round of chatter surrounding the PBOC's thinking on the current exchange rate. The yuan fixing was 21 pips softer than expected, while a PBOC-sponsored FX panel urged banks to limit speculative trading and ramp up risk management.
• EZ consumer confidence & U.S. existing home sales take focus on the data front. Elsewhere, ECB's de Guindos, de Cos, Holzmann, Kazaks & Kazimir are set to speak.