November 01, 2023 21:25 GMT
Firms On US Yield Slump & Higher Equities
NZD was the third best performer in the G10 space for Wednesday's session, rising 0.36%. NZD/USD tracks near 0.5850 currently. The kiwi benefiting from both a sharp pull back in US yields and a better tone to global equity markets.
- NZD/USD couldn't get beyond 0.5860, but we sit comfortably above yesterday's post employment data lows (just under 0.5790). The 20-day EMA near 0.5870 isn't too far away, the 50-day rests near 0.5920, the 100-day 0.5990.
- US data was weaker in terms of the ISM print and ADP report, while the Fed kept rates unchanged amid tightening financial conditions (as expected). Chair Powell stating "we are going meeting by meeting, asking ourselves whether we achieved a stance of policy sufficiently restrictive to bring inflation down 2% over time" - "we have come very far with this rate hiking cycle, very far."
- We saw -14bps to -21bps falls across the US yield curve. The 10yr is back to 4.73%. The SPX rose 1.05%, its third straight gain, while the VIX slipped back under 17%.
- The local data calendar is empty today. RBNZ Governor speaks later, but the topic is on climate change and is not expected to cover monetary policy.