Underperforms Broader USD Sell-off As Dollar Weakness Pivots

NZD/USD moved off its highs post the Asia close on Thursday. From highs at 0.6149 we fell back to 0.6185/90, holding above post Q3 GDP lows from early yesterday (0.6170). We are back at 0.6205/10 in early Friday Asia Pac dealings. This is an NZD gain of just over 0.50% for Thursday's session, only bettering CHF in the G10 space.

• USD weakness (BBDXY -0.80%) pivoted more towards the EU currencies post the Asia close on Thursday. EUR and GBP both rose over 1%, as their respective central banks held steady. NOK was the best performer up over 2.6% (post a 25bps rate hike).
• US yield weakness extended, but more so at the back end of the curve, the 10yr printing sub 3.90%. This came despite better than expected data (retail sales, and IJCs), with post Fed sentiment continuing to dominate.
• Some carry over from recent weaker NZ data outcomes may have weighed on NZD, although AUD was also somewhat sidelined. Commodity indices posted firm gains, the aggregate Blomberg index up over 2.2%.
• On the data front today we have the Nov manufacturing PMI up shortly, the prior outcome was 42.5.