Kiwi Dollar Leads Gains, Japanese FX Matters Remain In Focus

General risk tone remains positive after the second consecutive Wall Street session where all three benchmark indices registered gains. The kiwi dollar trades on the front foot after the expectation-beating CPI print yesterday.

• NZD/USD is fluctuating in the vicinity of the $0.5700 mark. Meeting-dated OIS price ~73bp worth of tightening at the November monetary policy review, while pointing to a ~5.25% terminal rate.
• USD/JPY trades at Y149.22, little changed on the day, with participants still on alert for signs of an FX intervention. U.S. Tsy yields are only marginally higher across the curve.
• Japanese FinMin Suzuki sayd officials were intensifying their monitoring of FX markets and stand ready to respond to excessive volatility. A sudden bout of volatility yesterday led some watchers to speculate about a potential stealth intervention.
• Inflation data from the UK, Eurozone and Canada will take focus today, alongside U.S. housing starts and building permits. There is plenty of central bank speak inbound from BoJ, Fed, ECB, BoE and Riksbank officials.