NZD

• Positive tone. A solid end to November with US & European equities rising. Bond yields dipped. AUD & NZD edged a bit higher.• JPY revival. JPY rebound has weighed on USD/JPY & the USD. Narrowing yield spreads as the BoJ hikes & others cut rates is JPY supportive.• Event radar. Locally, retail sales out today & GDP is on Weds. US Fed Chair Powell speaks this week & the latest US jobs figures are due. Markets ended last week, and November, on a positive note. In the holiday shortened US session equities rose with the S&P500 (+0.6%) touching another...

• Softer USD. A firmer EUR, stronger JPY, & month-end portfolio rebalancing flows exerted a bit of downward pressure on the USD.• AUD & NZD. AUD ticked up & NZD rose despite RBNZ delivering a 50bp cut & indicating more to come. AUD/NZD below model estimates.• Holiday markets. US markets closed for Thanksgiving tonight & only open for a few hours on Friday. Thinner liquidity may generate bursts of intra-day vol. Mixed fortunes across markets over the past 24hrs with the economic data and central bank comments butting up against month-end portfolio rebalancing ahead of the US Thanksgiving holidays. US...

• US tariffs. Markets rattled by President-elect Trump’s announcement tariffs would be imposed on Mexico, Canada & China on his first day.• USD firmer. The move supported the USD & weighed on cyclical currencies like AUD & NZD. Negative risk sentiment saw the JPY outperform.• Data flow. Today, the monthly AU CPI is due. RBNZ also expected to cut rates again with a 50bp reduction predicted by analysts. Markets were rattled yesterday after President-elect Trump fired a few shots in his post-election trade war. Via social media Trump stated that to curb the inflow of drugs and migrants he would...