NZD/USD is the only G10 currency to have risen against the USD in the past 24 hours. The pair got to a low of 0.5661 in NY, amid broad USD strength, before rebounding to +0.5750. We sit slightly below those levels now. The main domestic data today is the ANZ commodity price index for September. Later in the day, Finance Minister Robertson speaks at a Bloomberg address event (4:15pm local time, 4:15am BST).
- Despite yesterday's generally hawkish RBNZ tone, yield momentum has remained largely in favour of the USD. On a 2yr basis, the bond yield spread is -13bps, right around recent cyclical lows. US yields generally recovered overnight, amid resilient US data and hawkish Fed speak.
- Cross asset signals for NZD recovered from an equity market standpoint. The US SPX finished down -0.2%, recovering from earlier losses. The VIX closed lower at 28.55% as well. This likely aided NZD's rebound late in NY.
- Commodities were higher, led by energy/oil (Brent to $93.60/bbl) on the OPEC+ production cuts.
- AUD/NZD remains above 1.1300, but is away from overnight highs above 1.1340 (1.1310/15 last). NZD/GBP rebounded, maintaining a high degree of short term volatility. The pair is back above 0.5060, but we remain well off recent highs above +0.5300.