Q3 inflation data is due soon:

Coming up around midday (London time) is the GlobalDairyTrade auction

  • The previous result was a surprise fall in the index

And ... the election. NZ First met yesterday and talked all day. They will be meeting again today. There has still been no decision from the people who make up the board of NZ First, but they are expected to tell New Zealand voters what they've decided some time this week.

On the dairy auction .... at the previous auction (two weeks ago) whole milk powder fell 2.7% and the index was down 2.4%. If there is another fall tonight it will fuel speculation that Fonterra won't meet its forecast milk payout for the 2017/18 season. This (should it play out that way) should be a negative input for the NZD.