Kiwi In Demand

NZD has been the big mover this morning, comfortably outperforming its G10 peers. Despite a lack of any specific headlines or data releases that could underpin the move, the kiwi took flight, gaining nearly 50 pips vs. its Antipodean cousin AUD at one point, which pushed AUD/NZD towards last Thursday's worst levels. One reason for the kiwi's appreciation could be speculation ahead of the imminent update on New Zealand's alert level settings, which is the main event on the domestic calendar today.

• Little action across the rest of the G10 FX space so far, with focus on broader headline and market flow, as the regional docket features no tier-1 releases. AUD is the worst performer in the basket, likely as a function of sales against NZD.
• In Japan, focus falls on the election of the new LDP leader. The current Chief Cabinet Secretary Suga is widely expected to win, with local press pointing to as much this morning. The winner of the race should be declared Japan's PM as soon as on Wednesday.
• Japanese industrial output (final) and EZ equivalent take focus from here.