Research Team at BBH, notes that the Australian and New Zealand dollars are leading the move against the US dollar today (up to ~0.7% and 0.8% respectively).
“The driving force is not Fed expectations, but a greater sense that the RBA is in no hurry to cut interest rates and that an RBNZ rate cut next month is near a done deal that had been discounted. The Aussie is having another run at its nemesis near $0.7700 that has blocked the upside over for several months. Slightly stronger than expected CPI helped the Kiwi has come up to test the 20-day moving average (~$0.7200) and a retracement objective of the nearly five-cent decline since early-September ($0.7210). A break could spur a move toward $0.7260-$0.7300. Consumer prices rose 0.2% in Q3. The median guesstimate was flat after a 0.4% rise in Q2. The year-over-year rate also stands at 0.2%. It was expected to ease to 0.1%. Kiwi is sitting just below its highs ahead of the dairy auction.”