Buoyant

NZD/USD picked up a bid Monday, but failed to test the recent cycle highs, topping out just shy of there. The initial risk-on feel, seen as U.S. Pres-elect's team ruled out a nationwide lockdown & 15 Asia-Pac countries signed off on the RCEP trade deal, was strengthened by the news that Moderna's Covid-19 jab was 94.5% effective in a late-stage clinical trial.

• PM Ardern was forced to respond to accusations that her gov't has lost control over the housing market. The National Party's Shadow Treasurer urged FinMin Robertson to write a letter of expectation to the RBNZ, asking the central bank to weigh in, but Ardern pushed back against the idea, arguing that it would undermine "the separation between politicians and the Reserve Bank".
• Elsewhere, NZ Trade Min O'Connor told BBG that the finalisation of the RCEP pact will boost exporter confidence, adding that U.S. participation in trade deals like RCEP would be welcome. O'Connor lamented NZD strength, but stressed that domestic exporters are performing well nonetheless.
• NZD/USD last trades at $0.6909, a touch higher on the day. A move through Nov 12 high of $0.6915 would clear the way to $0.6939-42, which capped gains in 1Q2019. Bears need a fall through Nov 13 low of $0.6811 before targeting the 50-DMA at $0.6678.
• This week's highlights in New Zealand include Wednesday's PPI & Friday's credit card spending.