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Kiwi Dented By Risk Aversion

NZD

Risk sentiment soured Monday as participants turned cautious ahead of this week's flurry of central bank decisions, including from the Fed. The latest Omicron goings-on continued to grad attention, with further global tightening of restrictions eyed.

  • Worth recapping PM Ardern's announcement on impending changes to Covid trafic light settings. Auckland will move to Orange level on New Year's Eve alongside all other regions currently at Red, save for Northland. The next review is scheduled for Jan 17.
  • New Zealand's quarterly BoP current account balance is due Wednesday, with GDP coming up Thursday. ANZ Consumer Confidence & Business Confidence are due Friday. In terms of speeches, Wednesday's parliamentary testimony from RBNZ Gov Orr will draw attention.
  • NZD/USD trades at $0.6754, little changed on the day. A breach of Dec 7 low of $0.6737 would please bears, opening up Nov 2 low of $0.6589. Bulls look to retake Dec 9 high of $0.6823 before taking aim at Dec 1 high of $0.6868.

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