Here is Stephen Innes at OANDA on the local currency:
“We’ve had a lot of interest for the Antipodeans after the robust GDP data out of New Zealand.
Given the slow unwind of political risk after Adrian Orr was appointed the new Reserve Bank governor last week, the Kiwi is better positioned to benefit from stronger domestic economic data.and firmer dairy prices
Commodity vs Aussie correlation is leading the charge into year end.
Given what’s expected to be a dovish Fed in 2018 there been far too much energy sapped paying too much attention to the dwindling differential trade as that only comprises one component in the 3 ‘C’s for trading the Aussie (Carry, Commodities and China)
Commodities are ending the year on a strong note with Oil prices firming while Copper is back at the highs for the year.
And while China economy could moderate next year as policies designed to reduce leverage unhurriedly unfold. And sure deleveraging could lead to a drop in overall domestic investment, prudent monetary policies and greater liberalisation of mainland markets will be viewed favourably by international investors which should keep China’s economic engine well oiled in 2018.”