The Antipodeans are pacing gains in G10 FX space as the Labor Party beat the Liberal-National coalition in Australia's federal election and is on track to form a majority government, which reduces the risk of a hung parliament hindering the smooth passage of legislation.
- The Aussie has ignored comments from RBA Asst Gov Kent, who said model estimates have the neutral level of cash rate "somewhere between 2-3% at the moment," adding that "it's very uncertain" and "changes over time."
- Trans-Tasman spillover has lent support to the kiwi, with participants positioning ahead of Wednesday's RBNZ Monetary Policy Statement that is expected to bring a 50bp hike to the OCR.
- G10 currency pairs have generally respected with ranges, although NZD/USD pierced last week's high on its way to best levels since May 6.
- The U.S. dollar is under light pressure, underperforming all its major peers, as U.S. e-mini futures have edged higher in early trade.
- The Asia-Pac data docket is light, which shifts focus to German Ifo Survey, due later in the day. Comments from ECB's de Cos, Holzmann, Nagel & Villeroy, Fed's Bostic & BoE's Bailey are on tap.