CHINA: Key Local News Highlights - Bond Issuance to Capitalize Banks

The AUD/NZD overnight range was 1.2111-1.2147, the Cross is trading in Asia around 1.2120, -0.12%. The Cross stalled again toward the 1.2200 area and turned lower pretty quickly on yesterday's hot NZ CPI print. The price action is starting to turn sluggish as momentum begins to slow toward the important Weekly 1.2200-1.2300 resistance. I expect it to do a lot of work around here initially after close to a 15% bounce from the lows seen almost a year ago. The Bulls though will remain confident while the pair holds above 1.19-1.20 support, but the price action does suggest it might be time for some prudence and to book some of the profit on those longs.

• The AUD/NZD Average True Range(ATR) for the last 10 Trading days: 63 Points

Fig 1: AUD/NZD spot Monthly Chart

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

SELL 2000 of USM6 traded at 114-06, post-time 10:38:01 AEST (DV01 $270,102). The contract closed at 114-07, 0-01 from closing levels.

• CHINA PBOC CONDUCTS CNY6 BLN VIA 7-DAY REVERSE REPO WEDS