Market outlook for NZD is well bid - ANZ

Analysts at ANZ explained that markets have shrugged off the Italian ‘no’ vote: equities and EUR are firmer; US Treasury bond yields, USD and gold fell.

Key Quotes:

"US non-manufacturing ISM continued the run of positive economic data.

NZD shrugs off weakness after PM Key’s surprise resignation yesterday.

The NZD has totally moved on from its initial plunge following the surprise resignation of PM John Key yesterday. To be fair, AUD and EUR have also rallied overnight, so the NZD really just moved in suit (it actually slid a bit against AUD), but the fact that it has not been rattled by the change in leadership just shows how well understood and strong the overall political landscape is in this country. A new PM will be announced soon, but for all intents and purposes, it’s BAU. Expect the NZD to remain well bid, and for TWI strength to remain a part of the monetary policy mix/landscape.

RATES: Trading in kiwi rates was subdued in London, but expect local rates to edge higher on the open and the curve to steepen following global moves."