NZD: NZD/USD - Consolidates On A 0.6000 Handle

The NZD had a range overnight of 0.5988 - 0.6012, Asia is trading around 0.6000. The NZD has found some demand just below the 0.6000 area as the US stock market pushed higher again, and the USD bounced.

• Milk Price Auction Sees Second Consecutive Drop : Overnight, the fortnightly whole milk powder auction saw prices fall a further 3.7% versus the prior result. From $4332, we are now back at $4173. This is the second consecutive decline for the auction result, but by recent standards we are still elevated from an historical standpoint.
• Bloomberg - “Donald Trump signed a directive formally raising steel and aluminum tariffs to 50% from 25% as of June 4, the White House said. Scott Bessent said Beijing has a choice on whether it’s a dependable partner, reiterating that China must shift to a more consumption-led economy.”
• The NZD held up ok with demand seen just below 0.6000, this while the USD continued to retrace higher overnight. Can it have another look back above 0.6050 this week, or will the market wait to first see what NFP has to say.
• The support back towards 0.5850 has held very well, and while this continues to hold expect buyers to be around on dips. A clear break above 0.6050 is needed to provide the spark for the next leg higher.
• CFTC Data showed Asset managers maintaining their shorts, while the leveraged community pared back only a little of the decent short they had initiated the week before.
• Options : Closest significant option expiries for NY cut, based on DTCC data: 0.5900(NZD401m). Upcoming Close Strikes : 0.5990(NZD390m June 5), 0.5895(NZD305m June 5)

• Data/Event : Cotality Home Value

  Fig 1: NZD/USD Spot Daily Chart

  

  Source: MNI - Market News/Bloomberg

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