Data/eco today:
- NZ data: Nov. PMI back into contraction at 48.8 (vs. 50.3 prior, revised down from 50.5)
- NZ data: Nov. FPI -0.8% MoM (-0.6% prior)
- Fitch: don’t expect any widespread deterioration in the performance of assets underlying Aust and NZ structured finance and covered bonds in 2013.
- Aust data: MI Inflation Expectations at 1.8% (2.2% prior)
- Aust data: New Motor Vehicles for November 0.0% MoM (-2.8% prior)
Late in the day an announcement from Europe that the ECB is to supervise banks in the Euro-zone (FT link – paywall)- expected to be running in March 2014. EUR/USD had a dead day ahead of this. It rallied on the news from around 1.3060 to 1.3080, where it ran into some offers, but chewed through these over time to approach the NY high, where it found selling again ahead of 1.3100.
Story of the day, though, was the Yen – it continued to weaken against the USD and the crosses. There was no catalyzing news out – it just persistently ground out gains through the day.
NZD a little stronger on the day too.
