Dips Amid Broad USD Gains, Q3 Employment Figures Due Soon

NZD/USD lost 0.33% for Tuesday's session, amid broad USD gains. The Kiwi was mid range from a G10 standpoint, but outperformed the yen noticeably, which continued to lose ground post the BOJ decision. NZD/USD currently tracks at 0.5820/25, comfortably within recent ranges. Tuesday NY session lows were close to 0.5800. Yesterday's highs were near 0.5860.

• The BBDXY rose 0.44% to 1276.35, with firmer equity sentiment in EU and US markets (amid a further pull back in oil prices) not helping higher beta plays like NZD.
• US yields stayed on the front foot (10yr to 4.93% +3.6bps) but below recent highs. US data was mixed, but the main focus is the upcoming Fed decision later today.
• For NZ, Oct saw the first rise in house prices in 19 months per Core Logic (up 0.4% m/m, -5.7% in y/y terms), see this BBG link. Y/Y momentum is turning higher.
• Coming up shortly we have Q3 employment data. The market looks for the unemployment rate to rise to 3.9% (from 3.6%). Employment growth is expected to slow to 3.2% from 4.0% in Q2. Wages are projected to be similar to Q2 outcomes at +1.0%q/q.
• Earlier the RBNZ released its Financial Stability Review. It suggested that the financial system is well placed to handle the adjustment to higher interest rates. Some households are under stress, but the vast majority is managing the higher repayment burden.