NZD Bottom Of G10 Pile Ahead Of Expected Hike

NZD and AUD have meandered lower in early Asia-Pac dealing, NZD dropping ahead of the RBNZ's rate announcement due at the top of the hour, most expect the Monetary Policy Committee to hike the OCR by 25bp even as New Zealand's renewed outbreak of Covid-19 persists.

• In Australia markets digest that the APRA has "today increased the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications." Yesterday's RBA statement explicitly outlined the need for such a move.
• JPY softer, the initial round of approval ratings for the Kishida Cabinet proved disappointing for LDP officials, with the new administration starting from a relatively low base compared to previous governments (albeit an uptick from final support levels of the Suga Cabinet was evident).
• As mentioned, the latest RBNZ monetary policy decision headlines the broader docket during Asia-Pac hours, with the ongoing Chinese holidays set to hamper regional liquidity once again. ADP employment data provides the focal point of the U.S. docket on Wednesday.