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Kiwi Underperforms As Risk Sentiment Deteriorates

NZD

Kiwi underperformed the G10, except NOK, as the USD rose against all G10 currencies (USD index +0.2%). The pullback in risk sentiment weighed on NZD and it fell 0.7% to 0.6200 against the greenback. It has started the APAC session around this level.

  • Aussie has struggled against kiwi recently but on Monday the pair rose 0.2% and is now at 1.0742. It made a high of 1.0763 early in the European session.
  • After falling sharply yesterday, the NZX 50 is moderately higher so far today.
  • RBNZ dated OIS pricing is slightly firmer across meetings.
  • NZ job ads for December fell 2% m/m, the fourth consecutive monthly decline, as the economy continues to slow. But NZIER business confidence improved in Q4 with only 2% of businesses expecting the economy to deteriorate down from 52% the previous quarter. The survey also showed easing labour and price pressure with fewer firms planning to increase prices.

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