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USD Nudges Lower, NZD Remains G10 Outperformer On Local Bank's Hawkish RBNZ Call

FOREX

The broader USD coiled in Asia-Pac hours, at least when measured in BBDXY terms, with a light downtick then seen in the greenback as European participants settle in.

  • ECB & BoE rhetoric is probably helping apply some modest pressure to the USD, along with an uptick in Euro Stoxx 50 futures.
  • NZD outperformance was the standout in Asia, with feedthrough from a hawkish move in RBNZ-dated OIS post-ANZ’s new RBNZ call (now looking for 2x 25bp hikes across Feb & April, with the timing of the first cut pushed back to Feb ‘25) the dominant factor there.
  • More broadly, the presence of the LNY holiday in China and a related half day closure in Hong Kong curtailed volumes, leaving interbank FX activity ~35% below the recent norms, per several desks.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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