MACRO ANALYSIS: MNI US Macro Weekly: Solid Week For The Dual Mandate

Source: Bloomberg Finance L.P./MNI 

The NZD/USD had a range overnight of 0.5737 - 0.5756, Asia is trading around {NZD Curncy}. The NZD traded sideways overnight as US stocks ended the session lower but the USD pulled back strongly against the JPY and KRW in particular as verbal jaw-boning increases. The NZD has put in what looks like a top around 0.5850 and while this continues to cap I suspect the short-term could see bounces initially faded. On the day, the NZD bears will be feeling a little more comfortable, watching for sellers again back toward 0.5760-0.5780 as the shorts look for some momentum to build for a retest of the 0.5700 area.  

• CFTC Data of last week shows Asset Managers slightly increasing their short positions in the NZD, -40649(Last -37981). The Leveraged community reduced their own shorts that they had just begun to build quite aggressively, -10605(Last -14480).
• Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5600(NZD351m Jan 16), 0.5800(NZD420m Jan 16), 0.5895(NZD300m Jan 19} - BBG
• The NZD/USD Average True Range for the last 10 Trading days: 39 Points

Fig 1: NZD/USD Spot Daily Chart

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

Source: Bloomberg Finance L.P./MNI