NZD/USD Wipes Out Gains, Incoming NZ Ministers Receive Introductory Briefings

NZD/USD wavered Monday, with weekend developments helping the rate start on the front foot. Although it shed gains later in the Asia-Pac session, the London morning brought a dynamic rebound, capped only at a fresh cycle high of $0.7120. The rate wiped out gains into the WMR fix as crude oil slipped, while the greenback gained on NYC Mayor de Blasio's comment that the City should prepare for a full shutdown. The kiwi finished the day as the worst G10 performer.

• Westpac Consumer Confidence Index surpassed the breakeven 100 level in Q4, registering at 106.0, up from 95.1 seen in Q3.
• Elsewhere, ANZ Bank NZ said that it raised deposit requirement for investors willing to purchase a residential property to 40% from 30%.
• NZ Gov't circulated Briefings to Incoming Ministers (BIMs) this morning, as ministers are starting the new term. The briefing from the Housing and Urban Development Ministry provided some interest, revealing that house prices rose 41% over the last five years, while rents in some places increased by over 50% in some places. Other briefings warned against significant job losses in the arts sector, gov't's books becoming "unsustainable" in the medium term and rising child poverty rates.
• The rate last sits +6 pips at $0.7087. A move through Monday high of $0.7120 would open up the upper 2.0% Bollinger band at $0.7138. Conversely, losses past Dec 9 low of $0.7011 would expose Nov 23 low of $0.6897.
• Focus turns to BoP current account data (Wednesday), GDP (Thursday) as well as ANZ Consumer Confidence, final ANZ Business Confidence & trade balance (Friday).