IRAN: Iran Foreign Ministry - Not Realistic To Expect Quick Results In US Talks*

• Bank of Korea to Sell 2 Trillion Won 2-Year Bonds   
• Vietnam to Sell VND1 Trillion 3.3% 2031 Bonds      
• Vietnam to Sell VND1 Trillion 4.1% 2041 Bonds      
• Vietnam to Sell VND11 Trillion 4% 2036 Bonds        
• Vietnam to Sell VND500 Billion 2056 Bonds              
• Thailand to Sell 25 Billion Thb of 2031 Bonds
• Thailand to Sell 8 Billion Thb of 2050 Bonds
• Malaysia to Sell MYR2.5 Billion 91-Day Islamic Bills
• China to Sell 30 Billion Yuan 91-Day Bills     
• China to Sell 90 Billion Yuan 1.75% 2036 Bonds     
• Bank Indonesia to Sell 275-Day Dollar Sukuk Bills                 
• Bank Indonesia to Sell 30-Day Dollar Sukuk Bills    
• Bank Indonesia to Sell 183-Day Dollar Sukuk Bills                 
• Bank Indonesia to Sell 91-Day Dollar Sukuk Bills    
• Bank Indonesia to Sell 365-Day Dollar Sukuk Bills                

source:  Bloomberg Finance LP / MNI 

The NZD/USD had a range overnight of 0.5698 - 0.5748, Asia is currently trading around 0.5745. The NZD move lower stalled around 0.5700 as the first signs of demand appeared, then the huge reversal in risk has seen it lift off from there. Lots of questions to be asked about the validity of this bounce, as even though the Iranian President said he is prepared to end the war, the huge gulf in demands from either side is large to say the least. I continue to be skewed toward fading the bounce, until we get a clear path to peace and ships are flowing freely through the Straits. The NZD does look a little stretched in the short-term so we could see this relief rally retrace further but while below 0.6900 I would be using bounces to fade for now. On the day, the first resistance is right around here 0.5750-0.5780 and then the more important 0.5850-0.5900 area. The target for this break lower is the 0.5500-0.5600 area. 

• “The Islamic Republic is exchanging messages with the US but hasn’t held talks, its foreign minister told Al Jazeera.” - BBG
• PoliticoEurope on X: “The European Commission has urged people to work from home, drive and fly less, and for EU countries to urgently roll out renewables, as it warned of a prolonged energy crisis as a result of the conflict in the Gulf.”
• Options : Closest significant option expiries for NY cut, based on DTCC data: 0.5875(NZD426m). Upcoming Close Strikes : none - BBG
• The NZD/USD Average True Range for the last 10 Trading days: 54 Points
• Data/Event: Building Permits 

Fig 1: NZD/USD Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P