NZ Retail Sales Beat Bolsters Kiwi, Japanese Holiday Saps Liquidity In Asia

The kiwi received a boost from a strong beat in quarterly retail sales, which surged in Q3 after New Zealand lifted lockdown measures. An uptick in the three main e-mini indices has inspired broader greenback sales, pushing the currency to the bottom of the G10 scoreboard. NZD/USD has climbed to a fresh cycle high, printing best levels since Dec 2018. Demand for NZD has helped AUD/NZD narrow in on Friday's multi-month low, but the pair is yet to test the level.

• JPY has faltered amid positive risk sentiment and underperforms all of its G10 peers, save for USD. Liquidity has been sapped by a public holiday in Japan, while broader sentiment has drawn some support from positive musings surrounding Covid-19 vaccine/treatment matters.
• GBP kicked off as the best G10 performer, before giving way to NZD, as participants scrutinised press reports surrounding Brexit talks. BBG sources cited positioning by Asia-based traders as a potential driver of early sterling outperformance.
• ZAR re-opened on a softer footing, following Friday's downgrades to South Africa's credit rating from Fitch & Moody's, but has recovered since.
• The Asia-Pac calendar is very light during the remainder of today. Focus turns to a slew of preliminary PMI readings from across the globe, as well as comments from Fed's Barkin, Daly and Evans, BoE's Bailey, Haldane, Tenreyro & Saunders, ECB's Schnabel & BoC's Gravelle.