NZD: NZD/USD - Finds Demand Towards 0.5800 As USD Buying Dried Up

• Hong Kong to Sell HK$62.455 Billion 92-Day Bills                  
• Hong Kong to Sell HK$15 Billion 182-Day Bills                          
• Hong Kong to Sell HK$5 Billion 364-Day Bills                            
• Bank of Thailand to Sell THB60bn of 91-Days Bills                                 
• Bank Indonesia to Sell 29D SVBI Bills                             
• Bank Indonesia to Sell 183D SVBI Bills                          
• Bank Indonesia to Sell 92D SVBI Bills                             
• Bank Indonesia to Sell 365D SVBI Bills                          
• Bank Indonesia to Sell 273D SVBI Bills                          
• MAS to Sell S$15.2 Billion 28-Day Bills on July 29                   
• MAS to Sell S$22.5 Billion 85-Day Bills on July 29                   
• Singapore to Sell S$2.9 Billion Bonds Due 2027                      
• Philippines To Sell PHP 20.0Bln 2044 Bonds (PH0000058786*)                  

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