According to analysts at ING, some better employment 3Q18 employment data and a slightly more positive RBNZ has seen quite a substantial steepening of the NZD money market curve (some 10-30bp across 1-3 year maturities) has helped the NZD.
Key Quotes
“This week the only big quarterly release is PPI, but we doubt this is a big market mover. Instead, we expect NZD to largely trade alongside, if not slightly out-perform its AUD peer, both being driven by Chinese data.”
“Similar to the AUD, a re-assessment of very flat money market curves are helping the currency, but the headwinds from high US rates look here to stay. As such NZD could perform better on the crosses than against the USD.”
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