NZD/USD Loses Ground, AUD/NZD Back To 1.0630

NZD/USD is giving back some of last week's outperformance, albeit at the margins in the first part of Monday trade.

• The pair sits 0.20% lower, last near 0.6135. Other G10 FX are modestly higher against the USD.
• Comments have crossed the wires a short while ago from RBNZ Governor Orr that higher inflation is why policy rates are staying restrictive. Orr is appearing before parliament today.
• He also noted that "we’ll be back at the end of this month again with our updated views on the wisdom of that stance and the length which we have to be there" (per BBG).
• At face value this doesn't suggest a further tightening in rates is being considered, although tomorrow we get inflation expectations and Orr speaks early on Friday morning local time. It seems that if the data warrants it, that policy will stay "restrictive" for longer rather than hiking again at this juncture. In November, the RBNZ projections didn't imply an easing until H1 2025.
• NZD/USD is close to both the 20 and 50 day EMAs, which sit in the 0.6130/40 region.
• The AUD/NZD cross is higher, last near 1.0630/35, versus recent lows sub 1.0590.