NZD/USD was the second-best performer in the G10 space to start the week. The pair is up just under 2.2% for the past 24 hours. We currently sit around 0.5720, down slightly on overnight highs above 0.5730. The pair has run out of momentum on moves above 0.5750 recently, while beyond that is the low 0.5800 region.
- The main focus should be on the RBNZ outcome tomorrow though, although there could be some spill over from today's RBA meeting in Australia, particularly via the AUD/NZD cross.
- Gains against the USD were broad based in the G10 space (only CHF was down for the first session of the week).
- Risk on was evident across the equity space, while the VIX fell back to 30%. Commodities rose, the spot Bloomberg index up 1.14%, as oil gained ahead of a likely OPEC production cut announcement this week.
- Earlier, the NZIER 3Q survey showed some improvement in underlying conditions. A net 42% of firms expect the economy to deteriorate, down from +60% levels in Q2. There are signs demand is stabilizing, albeit at lower levels compared to the start of the year.
- Most firms (65%) still expect to raise prices in Q4, but this is unchanged from Q3.