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US 10YR FUTURE TECHS

(Z1)‌‌ Remains Above Last Week’s Lows

COMMODITIES

Crude Bounces, But Well Shy of Friday Highs

PIPELINE

November Corporate Debt Issuance Over $120B

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Risk sentiment was robust in Asia, lending support to high-beta FX. The kiwi led gains in G10 FX space despite a slight moderation in RBNZ tightening bets, with the OIS strip now pricing 32bp worth of rate hikes at the next monetary policy meeting. A clean bullish technical break in NZD/USD seemingly inspired a fresh round of demand for the pair, which spilled over to other kiwi crosses.

  • Spot NZD/USD cleared the 200-DMA/descending trendline drawn off Feb 2021 high, which coincided at $0.7101 today, and rallied to a fresh one-month high.
  • Commodity-tied currencies were in demand, even as crude oil futures were steady. CAD was the odd one out, struggling to garner strength.
  • Firmer risk sentiment reduced demand for safe haven currencies. The DXY retreated to worst levels in two weeks, as the greenback underperformed.
  • The global data docket is fairly light today, but this scarcity will be somewhat compensated by plenty of central bank rhetoric. Speeches are due from a number of Fed, ECB, BoE, Riksbank & Norges Bank members.