Free Trial

Aussie Slips On Oil

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

NZD/USD wavered Tuesday, but managed to extend its winning streak to seven straight sessions at the end of the day. There was little new to drive price action, which prompted a reassessment of familiar risks.

  • Main focus today falls on the RBNZ's last MonPol decision of the year. We have published our comprehensive of the upcoming MPS - click hereto access. Policymakers are expected to unveil the details of a Funding for Lending Programme, to be launched by the year-end.
  • Mind that New Zealand's central bank has since published a statement noting that it will consult about the re-introduction of LVR restrictions on high risk lending, effective from Mar 1. We flagged that the pace of house price inflation remains a concern. FinMin Robertson lauded the RBNZ's decision to consider reinstating LVRs as "sensible".
  • In addition, the RBNZ said that it "is further delaying the start of increases in bank capital until [July] 2022" to give lenders the chance to respond to the impact of the Covid-19 pandemic.
  • NZD/USD last trades flat at $0.6830, just shy of cycle highs. A clean break above Nov 9 high of $0.6855 would confirm that the uptrend is intact, opening up the $0.6939-42 zone, which capped gains in 1Q2019. Bears look for a dip through the 23.6% retracement of the Sep 24 - Nov 9 rally/Nov 9 low at $0.6774/73 before targeting the 50-DMA at $0.6662.
  • Later in the week, focus moves to BusinessNZ M'fing PMI & food price index, both due Friday.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.