NZD: Can't Hold Above 0.6000
Apr-22 22:31
The NZD had a range overnight of 0.5964 - 0.6029, Asia is pressing the lows as risk attempts to bounce once more.
- Treasury Secretary Bessent Tuesday privately told investors the tariff standoff is unsustainable and he expects de-escalation with China.
- “The IMF slashed its world growth forecast for this year and next, warning the outlook may deteriorate further amid risks of a global trade war. China’s growth estimate was cut to 4% in 2025 and 2026, down by 0.6 and 0.5 percentage points. Tariff threats have created uncertainty that’s “off the charts,” the funds chief said.”(per BBG)
- The move higher on Monday was in thin liquidity and looked overdone, as markets have stabilised and risk probes higher once more the move to sell USD has been unwound.
- The NZD could not hold onto to its gains above 0.6000 and has quickly retraced, after such a big move in such a short period, it would be healthy for the NZD to see a pullback and some consolidation.
- The price action continues to suggest though that dips will probably find demand, first support on the day is 0.5900 then 0.5800/50.
- CFTC data show Asset managers have been aggressively paring back their shorts last week, Leveraged funds not so much.
- NZD/USD: $0.5855(N$704mln) Expiry for Apr23 NY cut 1000ET (Source DTCC)
- Data : US S&P Global Services & Manufacturing PMI
Fig 1: NZD/USD Spot Hourly Chart
Source: MNI - Market News/Bloomberg
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ASIA: Government Bond Issuance Today.
Mar-23 22:27
- Thailand to Sell THB30bn of 182-Days Bills.
- Philippines To Sell PHP 7.0Bln 91D Bills (PH0000058695)
- Philippines To Sell PHP 7.0Bln 182D Bills (PH0000059271)
- Philippines To Sell PHP 8.0Bln 364D Bills (PH0000060063)
- Taiwan to Sell NT$25 Billion 20-Year Bonds
- China to Sell CNY182bn 2030 Bonds
- Bank of Korea to KRW500bn 91-Day Bonds
- South Korea to Sell KRW2.8tn 5-Year Bonds
US TSYS: Futures Re-Open Slightly Weaker After Uneventful Friday
Mar-23 22:26
In today's Asia-Pac session, TYM5 is 111-01, -0-02 from closing levels.
- Current levels remain well within technicals: resistance above 111-25 (High Mar 11), initial support below 110-19 (20-day EMA), according to MNI’s technicals team.
- US tsys finished Friday's NY session slightly mixed after an uneventful end to the trading week.
- US tsys reversed course and extended lows after President Trump spoke on a host of topics, including April 2, "Liberation Day," when reciprocal tariffs will bring money back to the US.
- “Bond investors are driving a wedge into the Treasury market, spurring demand for shorter-term Treasuries at ever-lower yields while longer-term yields drift higher. The next test comes with Friday's data expected to show inflation remains elevated, with personal income and spending data for February including the inflation gauge the Fed aims to have an average 2% over the long run.” (See link)
ASIA: Coming up in Asian Markets Monday
Mar-23 22:14
| Event | GMT | HKT | AEDT |
| HSBC India PMI Composite | 5:00 | 13:00 | 16:00 |
| HSBC India PMI Mfg | 5:00 | 13:00 | 16:00 |
| HSBC India PMI Services | 5:00 | 13:00 | 16:00 |
| Singapore CPI y/y | 5:00 | 13:00 | 16:00 |
| Singapore CPI NSA m/m | 5:00 | 13:00 | 16:00 |
| Singapore CPI Core y/y | 5:00 | 13:00 | 16:00 |
| Malaysia Foreign Reserves | 7:00 | 15:00 | 18:00 |
| Taiwan Unemployment Rate | 8:00 | 16:00 | 19:00 |
