NZD: NZD/USD Closes The Session Unchanged, As USD Continues Moves Higher
Jan-02 21:51
- NZD/USD closed the Thursday session unchanged at 0.5594, after initially trading slightly higher during the APAC session, to 0.5625, gains were pared as the USD continued its impressive rally to start 2025.
- The initial gains in the NZD/USD were related to traders closely monitor signs of a potential recovery in China's economy, with President Xi Jinping announcing on Tuesday that China will adopt more proactive policies in 2025 to stimulate economic growth.
- The BBDXY rising around 0.3% on Thursday, taking the index to the highest level in over two years, to trade at 1,314.01. News flow remained limited as markets remain in holiday mode, as the path of least resistance remains clearly tilted towards the upside for the greenback.
- US unemployment report pointed to a resilient labor market, with initial applications for US unemployment capped 2024 at an eight-month low
- New Zealand's home value index fell 0.2% m/m in December versus revised -0.2% in November, according to CoreLogic.
- The pair is now eyeing off the lows from 2022 of 0.5500, We trade well below all moving averages, while the RSI is now nearing it's most oversold for the past year, at 27.5. Initial resistance is at 0.5688 (20-day EMA)
- The NZ-US 2yr swap remains at multi-year lows, currently -81.5bps, just shy of the 2018 lows of -100bps
- Expiries: 0.5650 (NZD621m) for today and upcoming notable strikes: 0.6475 (NZD301.2m Jan. 8)
- The local calendar is empty today, although the local market returns from two days off.
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NZD: NZD Down A Touch But Within Recent Ranges, Milk Auction Solid Overnight
Dec-03 21:32
NZD/USD was mostly range bound post the Asia close on Tuesday. We couldn't sustain a move back above 0.5900 and track near 0.5880 in early Wednesday dealings. This leaves NZD around 0.15% weaker for the session, an underperformer in the G10 space, along with CAD and SEK. Other G10 currencies tracked higher against the USD, but aggregate moves were modest. The DXY is down around 0.10%, the BBDXY index close to flat for the session.
- Recent technical levels remain play for NZD/USD, with the 20-day EMA (around 0.5905/10), still an upside focus point. Recent lows rest at 0.5864, while late Nov lows were just under 0.5800.
- In the cross asset space, sentiment was buffeted by headlines of the South Korean President Yoon Suk Yeol declaring martial law. It was lifted though, which helped broader risk sentiment stabilize. US yields finished higher across the benchmarks, aided by stronger JOLTS data. US equities managed modest gains, EU equity sentiment was firmer earlier.
- Overnight we had a positive GDT whole milk price auction, which was up 4.1%. This continues the strong run seen in the series. Later on we get ANZ NZ commodity prices for Nov.
- We also have Q3 Aust GDP, so be mindful of spillover risks. The AUD/NZD cross is back near 1.1025/30, holding within recent ranges.
GERMAN AUCTION RESULTS: 2.00% Dec-26 Schatz
Dec-03 21:30
| 2.00% Dec-26 Schatz | Previous | |
| ISIN | DE000BU22072 | |
| Total sold | E4.5bln | E5bln |
| Allotted | E3.607bln | E4.019bln |
| Avg yield | 1.94% | 2.11% |
| Bid-to-offer | 1.84x | 1.76x |
| Bid-to-cover | 2.30x | 2.19x |
| Average Price | 100.117 | 99.77 |
| Low acc. Price | 100.115 | 99.77 |
| Pre-auction mid | 100.109 | 99.764 |
| Previous date | 12-Nov-24 |
Adds in allotted amount.
ASIA: Coming Up In Asian Markets On Wednesday
Dec-03 21:07
| 0030GMT | 0830HKT | 1130AEDT | Singapore Nov S&P PMI |
| 0030GMT | 0830HKT | 1130AEDT | Hong Kong Nov S&P PMI |
| 0145GMT | 0945HKT | 1245AEDT | China Caixin PMI Services |
| 0400GMT | 1200HKT | 1500AEDT | Thaialnd Nov CPI |
| 0500GMT | 1300HKT | 1600AEDT | India Nov HSBC Services PMI |
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Sep-26 08:00
