An uneventful close to 2025
• Market price action over the first three weeks of December was modest, with a lack of key drivers to perturb investors
• The bias to global rates was to the upside on a view of maturing rate cutting cycles
• The USD was broadly weaker; NZD/USD showed a small gain and NZD cross movements were also small
November a net nothingburger
• Markets were well contained in November, with little net change across global equities, rates and currencies
• The NZD hit fresh lows during the month, before recovering after a more hawkish RBNZ policy update than widely expected
• Higher conviction on the end of easing cycles saw both NZ and Australian rates higher, against the global trend
Mixed NZD performance in October
• A dovish 50bp cut by the RBNZ caused only temporary NZD weakness in October
• The USD was broadly stronger, and NZD/USD fell just over 1%; the NZD recovered from a mid-month malaise and ended mixed on the key crosses
• JPY underperformed on political uncertainty and the BoJ remaining on the sidelines; NZD/JPY rose 3%