The weakness for AUD/USD is fairly gentle, its off 30 or so points from earlier highs. There are AUD/NZD flows going through which is helping to limit the losses on NZD/USD (i.e. selling of AUD and buying of NZD).
Coming from New Zealand later in the week are:
- December 15 will bring the half-yearly economic and fiscal update
- December 16 brings Q3 GDP
The eco/fiscal update is expected to show resilient tax revenues helping to support government finances despite coronavirus-support spending. 3 GDP is likely to be 'looked through' to a better Q4 result.
Policy divergence ahead between the RBNZ and RBA continues use to be a support for NZD against the AUD despite the recent upticks for AUD/NZD: