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Omicron Optimism Props Up Risk Appetite

NZD

NZD/USD bounced in Wednesday's London hours as optimism about the potential of existing vaccines to target the Omicron coronavirus variant inspired a round of risk-on flows. Pfizer/BioNTech cited results of an early lab test which suggested that the immune response generated by three doses of their Covid-19 vaccine could neutralise the Omicron variant.

  • The rate operates at $0.6806, marginally below neutral levels, ignoring a series of local data releases. Bulls need a jump above Dec 1 high of $0.6868 to gain some momentum. Bears need a fall through Dec 7 low of $0.6737 to return into the driving seat.
  • The value of New Zealand's manufacturing activity shrank 2.2% Q/Q in the third quarter after a 3.7% gain in the second quarter.
  • StatsNZ also released Q3 business employment data, which showed that the average number of filled jobs rose 1.8% Q/Q as the government's Covid-19 wage subsidy scheme damped the impact of lockdown.
  • Separately, BNZ's monthly job ads index rose 5.1% M/Min November, posting the largest increase since May as the government eased restrictions in Auckland.
  • BusinessNZ Manufacturing PMI and card spending data will hit the wires tomorrow.

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