Weakens Amid Broad USD Gains, Auckland House Prices Rise Strongly In Nov

NZD/USD tracked lower post the Asia close on Tuesday. We sit just above NY lows in early Wednesday dealing, last near 0.6130. NZD lost around 0.60% for the session, the third worst performer in G10 space for the session. Broader USD gains continued, with the BBDXY up just over 0.20% for the session.

• For NZD/USD, we are comfortably off recent highs above 0.6200. Near 0.6090 is the 50% retracement of the July to Oct sell-off, the 200-day EMA is back near 0.6070.
• The USD defied a weaker yield backdrop, with the 10yr back to 4.17%, of 8bps, as the US jolts data disappointed ahead of NFP. Prior dovish ECB speak weighed on EUR/USD, which is back sub 1.0800. This shift boosted broader USD sentiment.
• Equity sentiment was mixed, with lower EU markets, while only the Nasdaq rose in the US. NZD/JPY faltered and is back to the low 90 region.
• Locally, the whole milk powder price index rose 2.1% at the GDT auction (see this BBG link for more details).
• Also note Auckland average home prices rose 8.7% m/m in Nov and posted the first y/y rise this year (see this link).