NZD: NZD/USD - Finds Demand Towards 0.5800 As USD Buying Dried Up
The NZD/USD had a range overnight of 0.5818 - 0.5865, Asia is trading around 0.5860. The initial USD demand seemed to be easily soaked up and when completed the USD proceeded to fall away effortlessly in the N/Y session. The Nvidia quarterly earning report disappointed being the poster child for AI and Tech it will be worth watching to see how the market digests this. The NZD again found some demand back towards 0.5800, sellers should continue to be around looking to fade any move back towards the 0.5950 area initially. US Futures have opened slightly lower this morning on the back of Nvidia, E-minis -0.35%, NQU5 -0.55%.
- Bloomberg - “Nvidia slid after giving a tepid outlook, fueling concerns that a massive run-up in AI spending is slowing. The forecast for $54 billion in third-quarter sales excluded data center revenue from China. The company approved an additional $60 billion share buyback.”
- MNI INTERVIEW: US Growth, Jobs Poised For Rebound - Miran. The U.S. economy and job market are set for a bounceback in coming months as fading uncertainty surrounding trade and tax policies leads to renewed investment and hiring, Stephen Miran, chair of the White House Council of Economic Advisers, told MNI Tuesday.
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5700(NZD500m Sept 2) - BBG
- CFTC Data of last week shows Asset Managers slightly reduced their new short position in the NZD -3198(Last -3679), the Leveraged community also reduced their own shorts slightly -4004(Last -4190).
- Data: Filled Jobs, ANZ Activity Outlook
Fig 1: NZD/USD Spot Hourly Chart
Source: MNI - Market News/Bloomberg Finance L.P
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ASIA: Government Bond Issuance Today
- Hong Kong to Sell HK$62.455 Billion 92-Day Bills
- Hong Kong to Sell HK$15 Billion 182-Day Bills
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- Philippines To Sell PHP 20.0Bln 2044 Bonds (PH0000058786*)
ASIA: Coming Up in Asia Today
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NZD: NZD/USD - Fails Above 0.6000 As The USD Makes A Recovery
The NZD/USD had a range overnight of 0.5967 - 0.6010, Asia is trading around 0.5975. The pair could not hold onto its early gains yesterday and slid lower as the USD bounced strongly across the board. There is lots of event risk coming up this week and we are also heading into the corporate month-end today so there could be an extra demand for USD’s further pressuring the USD shorts. Support now seen back towards the 0.5850/0.5900 area.
- Bloomberg - “New Zealand’s recovery from deep recession in 2024 looks wobbly, writes Bloomberg Economics’ James McIntyre. Spending remains contained, and the labor market is weakening. While the direct impacts from tariffs are minimal, the spike in uncertainty is taking a toll. The central bank has already cut rates aggressively. But the recovery needs more stimulus. With fiscal policy tight and migration slowing, the case for the RBNZ to loosen monetary policy further in 2025 and 2026 is stronger.”
- “China’s latest move to offer cash handouts nationwide to entice people to have children marks a new step in establishing a long-term subsidy program for boosting the birth rate.” - BBG
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.6000(NZD395m July 30), 0.5965(NZD424m July 31). - BBG
- CFTC Data shows Asset Managers again reduced their newly built longs in NZD +5034(Last +8192), the Leveraged community added slightly to their shorts last week -7328(Last -6744).
- Data/Event :
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
