NZD/USD Weighed Down By Familiar Drivers

NZD/USD is the weakest performer in the G10 space so far today. The pair last near 0.5730 (-0.30%), slightly above session lows (0.5926). Wednesday lows from last week around 0.5900 are within sight.

• Familiar headwinds for NZD are in play, which are also impacting the rest of the G10, albeit to varying degrees, with yen the only major steady against the USD so far today.
• USD yields are mostly firmer, albeit at the front end of the curve. We are away from highs for the session though.
• Regional equity sentiment is poor, with HK markets sharply lower after returning from the long weekend (-2.5% at this stage). This has weighed on risk appetite in the FX space, and likely aided some yen outperformance at the margins.
• NZD/JPY is back tracking sub 89.00, the pair was above 90.00 late in September.
• AUD/NZD sits a touch above recent lows. We were last near 1.0715, recent dips below 1.0700 have been supported. Be mindful of spill over from the upcoming RBA decision in a few hours.