NEW ZEALAND: ANZ Consumer Sentiment Recovers Further, Supporting Spend Outlook

Our preview of the October FOMC meeting minutes (out Nov 19 at 2pm ET) includes what to watch for upon release; MNI's FOMC Hawk-Dove Spectrum; and key highlights of FOMC participant commentary since the meeting.

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The NZD/USD had a range overnight of 0.5647 - 0.5675, Asia is trading around 0.5660. Risk has tried to stabilise overnight recovering off its lows albeit ending lower on the day. The NZD direction has stalled and is consolidating within a 0.5630-0.5700 range. The NZD reaction lower as risk tumbled was rather underwhelming and continues to hint toward a market that is all the same way and beginning to pare back some risk. The place to fade NZD again is closer toward 0.5750 and then 0.5850 should we see that area again. In the Asian session watch to see if we test back toward the 0.5670-90 area again, I am not sure we will get any clear direction for risk until the Nvidia results have been reported.

• (Bloomberg) -- Average price for whole milk powder fell to $3,452 from $3,503 at the previous auction, according to the GlobalDairyTrade website. GDT's weighted average price for all milk products was $3,678 a ton. The GDT price index change, which is a weighted average of the percentage changes in individual milk products between trading events, was a decrease of 3%
• Options : Closest significant option expiries for NY cut, based on DTCC data: 0.5730(NZD434m), 0.5835(NZD300m). Upcoming Close Strikes : 0.5480(NZD644m Nov 21), 0.5675(NZD300m Nov 20) - BBG
• The NZD/USD Average True Range for the last 10 Trading days: 40 Points
• Data/Event: PPI

Fig 1: NZD/USD Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

Source: Bloomberg Finance L.P./MNI