NZD/USD Remains Under 0.6500, Dec Trade Activity On Tap

NZD/USD spent the post Asia close on Friday range bound, moving between the 0.6460/0.6500 region. We finished close to 0.6495, but sit 10pips lower in the first part of trading today, around 0.6485. The currency was an outperformer in the G10 space, but overall moves were fairly modest, with USD indices ending a touch higher on Friday. NZD/USD is still aiming to sustain a break above 0.6500. On the downside, the 20-day EMA sits at 0.6417.

• Cross asset signals remained positive from equities, but again gains were modest (S&P500 +0.25%), while US yields finished close to unchanged across the 2yr and 10yr space.
• Devasting rain/floods impacted the NZ capital, Auckland, late on Friday. Further rains are expected, with travel activity curtailed out of the airport. This could impact Q1 domestic activity at the margins.
• On the data calendar, NZ trade activity due for Dec is on tap this morning. There is no consensus forecast, with the prior trade balance at -NZ$1863mn. The 12 month YTD deficit continued to trend lower to -NZ$14632mn in Nov.