Dovish RBNZ Comments Undermine The Kiwi

NZD lost ground as RBNZ Asst Gov Hawkesby & Chief Economist Ha struck dovish tones while discussing the central bank's monetary policy options, even as the general overtone of their rhetoric didn't deviate much from familiar messaging. Hawkesby noted that inflation and employment are expected to stay below targets for 2-3 years, which is a signal to continue providing stimulus. Ha talked up the impact of lower interest rates, said that the RBNZ doesn't have a lower OCR bound and underscored the central bank's preference for being aggressive rather than doing too little too late.

• This turned focus to NZD crosses, with NZD/USD having a look below its 100-DMA for the first time since Jun 1. AUD/NZD punched through the 50-DMA and printed a three-week high.
• USD/CNH popped higher as China enjoyed the last day of national holidays.
• U.S. Vice-Presidential debate was rather unimpressive and offered little of note.
• Yesterday's risk-on impetus coupled with a beat in Samsung's operating profit for Q3 pushed spot USD/KRW to a fresh multi-month low as onshore markets re-opened, but the rate has virtually erased losses since.
• Focus moves to U.S. initial jobless claims and Canadian housing starts. Central bank speaker list features Fed's George, Rosengren & Bostic, BoC's Macklem, BoE's Bailey and ECB's de Guindos, de Cos, Schnabel & Mersch, while the ECB will publish its Aug MonPol meeting minutes.