NZD: NZD/USD - Looking To Break Above 0.6050
Jun-04 22:28
The NZD had a range overnight of 0.5994 - 0.6039, Asia is trading around 0.6030. The NZD bounced overnight after the demand just below 0.6000 proved solid. The USD could not hold onto any of its gains as US yields fell quite hard reacting to weaker data and the market pricing in more rate cuts.
- Bloomberg - “New Zealand house prices fell 0.1% in May from April, marking a second straight month of decline. Despite falling interest rates, the property market remains sluggish due to a large overhang of houses for sale, which favors buyers and keeps a lid on values.”
- “Prices fell 1.6% from the year-earlier month, and while lower mortgage rates may boost household confidence, the economy and labor market remain constrained, making housing unaffordable in absolute terms..”
- The NZD found solid demand just below 0.6000 as dips remain well supported, aided by the USD again coming under renewed pressure.
- 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 could provide the spark for the next leg higher. Can the market be aggressive and sustain a move above this area pre NFP remains to be seen. A low NFP print might be the catalyst it needs though to finally extend 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: 0.5990(NZD390m), 0.5895(NZD304m). Upcoming Close Strikes : 0.5880(NZD300m June 10)
Data/Event : Volume of All Building, ANZ Commodity Price
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg
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ASIA: Government Bond Issuance Today
May-05 22:27
- Bank of Thailand to Sell THB45bn of 364-Days Bills
- Bank of Thailand to Sell THB60bn of 91-Days Bills
- Bank Indonesia to Sell 186D SVBI Bills
- Bank Indonesia to Sell 33D SVBI Bills
- Bank Indonesia to Sell 92D SVBI Bills
- Bank Indonesia to Sell 365D SVBI Bills
- Bank Indonesia to Sell 277D SVBI Bills
- Hong Kong to Sell HK$17 Billion 182-Day Bills
- Hong Kong to Sell HK$62.589 Billion 91-Day Bills
- Hong Kong to Sell HK$3 Billion 364-Day Bills
- Philippines To Sell PHP 30.0Bln 2032 Bonds (PIBD1032I695*)
- Indonesia To Sell 2030 Bonds (FR0104)
- Indonesia To Sell 2040 Bonds (FR0106)
- Indonesia To Sell 2035 Bonds (FR0103)
- Indonesia To Sell 2054 Bonds (FR0102)
- Indonesia To Sell 2045 Bonds (FR0107)
- Indonesia To Sell 2064 Bonds (FR0105)
- Indonesia To Sell 91D Bills (SPN12250807)
- Indonesia To Sell 364D Bills (SPN12260507)
AUD: AUDUSD In Uptrend, Spending & Building Data Coming Up
May-05 22:26
Aussie was one of the better performers on Monday with all of the G10 rising against the US dollar except CAD (USD BBDXY -0.3%). AUDUSD rose to a peak of 0.6494 before moderating to finish up 0.5% to 0.6468 with the greenback remaining nervous over the possibility of trade deals. President Trump said that there could be a number announced by the end of the week with Asian countries Japan, South Korea and India possibly the first.
- AUDUSD is currently trading around 0.6467 holding above the 20-day EMA at 0.6356. The uptrend continues with moving average studies in bull mode. Initial resistance is 0.6494 with the focus on 0.6528.
- The yen outperformed the G10 leaving AUDJPY down 0.5% to 92.95, close to the intraday low. It is currently around this level.
- AUDNZD range traded and is around 1.0838 off the intraday low of 1.0814.
- AUDEUR spent most of European and US trading above 0.5710. It is up 0.2% to 0.5716 after a high of 0.5725. AUDGBP is 0.1% higher at 0.4865 after rising to 0.4882.
- Equities were mixed with the S&P -0.6% but Euro stoxx flat. US futures have started the day slightly lower. Oil prices are off their intraday trough but still down with WTI -1.8% to $57.23/bbl. Copper is 0.7% higher and iron ore remains around $97/t.
- Today March household spending prints and is forecast to rise 0.2% m/m & 3.9% y/y. There are also building approvals which are expected to fall again.
ASIA: Coming Up in Asia Today
May-05 22:26
| 1930GMT | 0830HKT | 1030AEDT | Singapore S&P Global PMI APR |
| 2000GMT | 0900HKT | 1100AEDT | Philippines CPI YoY APR |
| 2000GMT | 0900HKT | 1100AEDT | Philippines CPI NSA MoM APR |
| 2045GMT | 0945HKT | 1145AEDT | Caixin China PMI Composite |
| 2105GMT | 0945HKT | 1145AEDT | Caixin China PMI Services |
| 2105GMT | 1005HKT | 1205AEDT | Vietnam CPI YoY APR |
| 2200GMT | 1005HKT | 1205AEDT | Vietnam Trade Balance APR |
| 0000GMT | 1005HKT | 1205AEDT | Vietnam Exports YoY APR |
| 0330GMT | 1005HKT | 1205AEDT | Vietnam Imports YoY APR |
| 0330GMT | 1005HKT | 1205AEDT | Vietnam Industrial Production YoY APR |
| 0330GMT | 1005HKT | 1205AEDT | Vietnam Retail Sales YoY APR |
| 0800GMT | 1100HKT | 1300AEDT | Thailand CPI YoY APR |
| 0800GMT | 1100HKT | 1300AEDT | Thailand CPI NSA MoM APR |
| 1300GMT | 1100HKT | 1300AEDT | Thailand CPI Core YoY APR |
| 1300GMT | 1300HKT | 1500AEDT | HSBC India PMI Composite |
| 1300GMT | 1300HKT | 1500AEDT | HSBC India PMI Services |
