MARKET PRICING: The release of New Zealand's...>

RBNZ: MARKET PRICING: The release of New Zealand's Q3 labour market report,

scheduled for tomorrow, could be the make or break data print re: further RBNZ

easing this year.

- The OIS space currently prices a ~55% chance of a 25bp cut at next week's

MonPol decision (the final meeting of 2019), well shy of the 100+% that was

observed only a few short weeks ago, with the mood music surrounding Sino-U.S.

trade talks and Brexit helping to alleviate some of the external pressure.

- That being said, market participants remain wary after the shock 50bp cut

implemented by the RBNZ earlier this year, and are still feeling out the RBNZ's

new reaction function under Governor Orr.

- Worries over the domestic growth backdrop may effectively force the RBNZ's

hand.