NZD: NZD/USD - Gets A Boost As Apple Investment Helps Risk Extend Higher

• MNI: RBA LEAVES CASH RATE AT 3.85%

The Asia-Pac USD/JPY range has been 145.83 - 146.45, Asia is currently trading around 146.00, +0.05% having found decent supply towards the 146.50 area in our session. USD/JPY price action was telling overnight as it marched relentlessly higher challenging a market positioned the wrong way. Price is still well within the wider 142.00 - 148.00 range and the pair will probably continue to take its cue from the US rates market.

• (Bloomberg) -- “Japan’s super-long bonds extended their recent declines, pushing the yield on 30-year debt back above 3% and within sight of a record high. The moves come as investors weigh the impact of a new Aug. 1 deadline for US tariffs and as concern mounts that an upper house election in Japan on July 20 will usher in higher government spending.”
• Zerohedge on X: - “Impact of new tariff on Japan (if remains unchanged): JPM strategist Rie Nishihara expects a reciprocal tariff of 24% will lead to 0.4%-0.9% drag in Japan GDP and 7% decline in TOPIX 2025 EPS. The downside scenario estimated by Rie for NKY is 34,000.”
• (Bloomberg) -- Japanese Finance Minister Katsunobu Kato says that he’s not planning to hold talks specifically on currencies with US Treasury Secretary Scott Bessent in the near future.
• USD/JPY has lost all downside momentum for now and is back in its wider 142.00 - 148.00 range. The Market is long JPY and should the USD manage to follow through with yesterday's price action the risk is a move back to the top end of the range to further challenge the conviction of the shorts.
• Options : Close significant option expiries for NY cut, based on DTCC data: 146.60($948m).Upcoming Close Strikes : 144.50($860m July9).
• CFTC data shows Asset managers increased their JPY longs slightly +94753, while leveraged funds maintained their longs they have tried to rebuild +15798.

Fig 1 : USD/JPY Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

The headlines overnight focused on the imposition of tariffs on Japan and Korea and the sending of letters to other countries.  However markets today focused on President Trump's suggestions that he remains open to further negotiations, further delaying tariffs until August.  These comments eased earlier concerns .  

• China's major bourses were strong with the Hang Seng leading the way with gains of +0.79%, CSI 300 up +0.74%, Shanghai Comp up +0.58% and Shenzhen rising +1.07%
• In Taiwan, the TAIEX was one of the few fallers, down -0.61% today.
• The KOSPI had a slow start to the day but things improved on Trumps comments and it has gained +1.40% to be one of the best performers of the major bourses.  
• The FTSE Malay KLCI is down -0.54% and the Jakarta Comp down just -0.05%.
• The FTSE Straits Times in Singapore is up +0.45% and the PSEi in the Philippines down -0.17%
• The NIFTY 50 is doing very little following yesterday finishing flat.