Today NZDUSD 6610/6680 NZDAUD 9210/9250
· NZD participated in an outsized USD move, squeezing out shorts and racing back above 66 cents for a 130pt move on the day
· This represents the biggest NZD move since the RBNZ in August which drove a similar sized move but in reverse (sell off)
· And the biggest move higher since June 2016 (top 8 daily up moves looking at data since 2013)
· NZD’s move kicked off yesterday as Trump stated he had a positive conversation with Xi Jingping re trade and Korea.
· Then we heard China was reportedly open to discussion with the US leader at the G20 (in Argentina from 30th Nov)
· US equities are looking peppy.. potentially the 3rd up day in a row calming vol fears (S&P +0.8%)
· Meanwhile the US 10y yields have eased slightly to 3.13, relatively stable though
· BoE signalled a faster pace of tightening which drove GBP outperformance – but still warned Brexit warrants caution
· See attached for our RBNZ preview for next week – it’s shaping up to be a biggy.
· Today ANZ Consumer Confidence at 10am. Aussie PPIs and retail sales at 1.30pm
· Tonight US payrolls