NZD steady as focus turns to US Presidential Debate and inflation data

Key Movers

Price action was muted through trade on Tuesday as the USD tracked within a narrow range when measured against a basket of major peers while most G10 currencies offered little to excite investors. Investors seemed content in sidelining major bets ahead of today's all-important US presidential debate and tonight’s US CPI inflation update. With the Fed’s focus shifting to the labour market we expect the market reaction to CPI number to be muted when compared to the data points influence over recent years, however, a surprise miss could see investors scrambling to adjust positions ahead of next week's Fed policy meeting. Instead, our attention will likely be glued to the first Trump vs. Harris debate. With such conflicting agendas at stake, there is ample room for volatility across financial markets as analysts adjust bets on who will take the Oval Office come November.

Note: The CAD underperformed on the day after the Canadian Government declared it would begin implementing Tariffs on Chinese Electric Vehicles while announcing a consultation period with the prospect of extending tariffs to include batteries, battery parts semiconductors, solar products and critical minerals.