NZD: NZD/USD - Extends Above 0.5950 As The USD Falls
The NZD/USD had a range overnight of 0.5916 - 0.5980, Asia is trading around 0.5975. US stocks loved the data and accelerated higher, while US yields most notably in the long-end continued lower. The NZD found good demand towards 0.5900 and had a strong bounce in reaction to the data. The USD in particular is beginning to look vulnerable, this is dragging the NZD higher. A close back above 0.6000 would negate any semblance of the downward pressure it was exhibiting. US Futures have opened pretty muted this morning, E-minis -0.01%, NQU5 -0.04%.
- MNI: China To Bolster Service Consumption With Greater Supply. China’s latest round of consumption stimulus will emphasise boosting services, with local governments taking the lead as near-term, large-scale central-government subsidies remain unlikely due to supervision difficulties that could dilute their effectiveness, advisors told MNI.
- Today sees August BusinessNZ manufacturing PMI which returned above the breakeven-50 mark in July after two months of contraction.
- August card transaction data also print today. The retail data is showing some recovery in spending but it remains soft. It underestimated nominal Q1 & Q2 retail sales substantially.
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5825(NZD1.01b Sept 17), 0.5900(NZD860m Sept 17), 0.6250(NZD427m Sept 17) - BBG
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
ASIA: Government Bond Issuance Today
- Bank of Korea to Sell KRW700bn 1-Year Bonds
- Hong Kong to Sell HK$1.0 Billion 5-year Bonds On Aug. 13
- Hong Kong to Sell HK$1.5 Billion 1-year Bonds On Aug. 13
- Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
- Vietnam To Sell VND 7.0Tln 2035 Bonds; (TD2535028)
- Vietnam To Sell VND 3.0Tln 2040 Bonds; (TD2540037)
- Vietnam To Sell VND 0.5Tln 2032 Bonds; (TD2532017)
- Vietnam To Sell VND 0.5Tln 2045 Bonds; (TD2545046)
- Vietnam To Sell VND 0.5Tln 2030 Bonds; (TD2530010)
- Hong Kong to Sell HK$1.25 Billion 2.7% 2030 Bonds
- Bank Indonesia to Sell 273D SUVBI Bills
- Bank Indonesia to Sell 31D SUVBI Bills
- Bank Indonesia to Sell 94D SUVBI Bills
- Bank Indonesia to Sell 187D SUVBI Bills
- Bank Indonesia to Sell 368D SUVBI Bills
- China to Sell CNY20bn 63-Day Bills
- India to Sell INR60bn 182-Day Bills on Aug. 13
- India to Sell INR100bn 91-Day Bills on Aug. 13
- India to Sell INR50bn 364-Day Bills on Aug. 13
- South Korea to Sell KRW2tn 28-Day Financial Bills
ASIA: Coming Up in Asia Today
| South Korea Unemployment rate SA | 0:00 | 7:00 | 9:00 |
| South Korea Bank Lending To Household Total | 4:00 | 11:00 | 13:00 |
| South Korea Money Supply L SA MoM | 4:00 | 9:00 | 13:00 |
| South Korea Money Supply M2 SA MoM | 4:00 | 11:00 | 13:00 |
| BoT Benchmark Interest Rate | 8:00 | 15:00 | 17:00 |
source: Bloomberg Finance LP / MNI
OIL: August Downtrend Resumed Tuesday On Excess Supply Outlook
After stabilising on Monday and Tuesday, oil prices continued their decline on Wednesday falling around a percent on expectations of significant excess supply. The US’ EIA revised up its 2026 market surplus forecast, while US production is expected to fall. The market at this point appears optimistic regarding Friday’s Trump-Putin meeting but President Trump diluted hopes that there would be a Ukraine peace deal so soon.
- WTI fell 1.4% to $63.08/bbl, close to the intraday low, to be down almost 9% this month. It has started today around $63.08. The breach of the bear trigger has opened up support at $58.17, 30 May low. Initial resistance is at $70.96.
- Brent was down 0.8% to $66.11/bbl after briefly falling below $66.00 but holding above the bear trigger at $65.06. The benchmark is 7.8% lower in August. Initial resistance is at $72.89.
- Bloomberg reported that US oil inventories grew 1.5mn barrels last week, according to people familiar with the API data. In term of products, there was a gasoline drawdown of 1.8mn but distillate rose 300k. The official EIA data is out later on Wednesday.
- The demand outlook has improved with the July US CPI data increasing pricing for a September Fed rate cut and additional tariffs on China have been delayed for another 90 days.
