Judged by Equity, Bond, and Commodity markets, it has been well and truly a risk-on past 24 hours, but it has been more mixed as far as the currency market has been concerned. The AUD did test 0.7970 but was unable to hold that level and now sits back at 0.7940. In a similar vein, USD/CAD and USD/NOK did test lower levels, but have retraced despite a sizeable move up in oil prices, now by $2.20/bbl, +4½-5% for WTI and Brent, Brent pushing through $50/bbl. After the New York Close, RBNZ Assistant Governor and Chief Economist John McDermott has been speaking and has not been heavy-handed at all in talking down the NZD. Instead he spoke of the neutral interest rate now being 3.5%, that it’s falling, that core inflation is running at 1.4%, symptomatic of moderate inflation pressures. The NZD has tried to push a little lower, but the initial market reaction was marginal at most and since more than fully unwound.