Kiwi Under Pressure, Safe Havens Catch Mild Bid

The kiwi trades on the back foot, despite the absence of any notable headline catalysts out of New Zealand. ANZ acknowledged that their bullish NZD/USD forecast for 2022 could be challenged amid no signs of a traditional seasonality boost to the kiwi in December. Separately, the latest housing report from QV pointed to "growing signs that this property growth cycle is starting to transition," days after outgoing RBNZ Dep Gov Bascand said that a faster than expected cooling of property prices could affect the RBNZ's aggressive tightening plans for the coming year.

• That being said, major FX crosses have held narrow ranges thus far. Some modest demand for safe haven JPY and CHF has emerged, with participants scrutinising the escalating diplomatic boycott of 2022 Beijing Winter Olympics.
• The BoC will deliver their monetary policy decision today, while speeches are due from ECB's Lagarde, de Guindos & Schnabel.