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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

KIWI: NZD/USD trades a touch lower at $0.6289. It has faced a degree of pressure
as NZ food price inflation ground to a halt from +0.7% M/M seen the month
before, while an SCMP source piece pointed to no progress on key sticking points
in deputy-level U.S.-China trade talks.
- The rate made a foray towards Monday's high yesterday and peaked just shy of
there before retreating. A stronger than expected PBoC fix calmed markets roiled
by the latest developments in the Sino-U.S. spat, pushing NZD/USD higher in
Asia-Pac hours. The kiwi was further aided by the ANZ's decision to raise their
Fonterra milk price forecast. Headlines pointing to the potential for a
U.S.-China mini-deal helped extend gains, before the rate slid in NY hours amid
a broader USD recovery, driven by higher U.S. Tsy yields & a firmer S&P500.
- Bears look for a break under $0.6255, where the rate bottomed on Sep 20, Sep
23 and Oct 3. Bulls need a lift through the $0.6300 mark before targeting
$0.6327/28, the high of Oct 8/mid-point of the Sep 12 - Oct 1 slide.
- NZ card spending figures and manufacturing PMI survey from BusinessNZ are due
on Friday. By the end of this week REINZ will publish its house sales data.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |