NZD: NZD/USD - Looks To Be Breaking Higher
Jun-12 22:32
The NZD had a range overnight of 0.6006 - 0.6071, Asia is trading around 0.6065. The NZD has bounced off support back towards the 0.6000 area once more as the USD remains under big pressure. This looks like it has the potential to start building for a move back towards the 0.6400 area.
- Bloomberg - “Trump floated higher auto tariffs in the “not too distant future” as he signed a measure blocking California’s EV mandate. Ford and GM slipped.”
- “Investors are also taking into consideration that this week’s Goldilocks consumer and producer price reports could lend to a dovish Fed meeting Wednesday. That’s especially true after Fed officials have expressed that inflation is the main concern among policymakers, even over slowing growth.”
- The NZD has found solid support towards 0.6000 and built a base from which to move higher, this break above 0.6050 if sustained looks to be building for a move higher, potentially back to 0.6400.
- While the support around 0.5850 holds there should be buyers around on dips. A clear break above 0.6050/0.6100 and the move could start to accelerate.
CFTC Data showed Asset managers maintaining their shorts, while the leverage actually added to their shorts last week. These shorts are beginning to be challenged now.
Fig 1: NZD/USD Spot Weekly Chart
Source: MNI - Market News/Bloomberg Finance L.P
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NZD: NZDUSD - Good Demand Below 0.5900
May-13 22:30
The NZD had a range Overnight of 0.5883 - 0.5942, Asia is opening around 0.5940. Risk has continued to bounce overnight, the NZD has benefited from this and just like the AUD is seen as a good proxy for China.
- Price action in the USD was very interesting in that it initially benefitted from the rise in stocks and the better risk sentiment. Overnight though the USD has given back most of those gains.
- After initially falling when risk spiked, the NZD found very good demand sub 0.5900 and has since clawed back all its losses.
- “China-proxy currencies Aussie and Kiwi should continue to outperform safe haven currencies yen and Swiss franc as the US and China have taken significant steps to de-escalate their trade war,” according to Brown Brothers Harriman via BBG.
- The support back towards 0.5800 held very well, and while this continues to hold expect buyers to return on dips. The first target is the highs just above 0.6000, a break here and the move higher can start to gain momentum.
- CFTC Data showed little movement, with Asset managers adding very slightly to their shorts and the leveraged community slightly reducing their own short.
Data/Event : NZ Apr Card Spending, Mar Net Migration
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg
ASIA: Government Bond Issuance Today
May-13 22:26
- Bank of Korea to Sell 500 Billion Won 1-Year Bonds
- Bank Indonesia to Sell 31D SVBI Bills
- Bank Indonesia to Sell 94D SVBI Bills
- Bank Indonesia to Sell 185D SVBI Bills
- Bank Indonesia to Sell 278D SVBI Bills
- Bank Indonesia to Sell 367D SVBI Bills
- Hong Kong to Sell HK$3.0 Billion 5-year Bonds
- Hong Kong to Sell HK$1.5 Billion 1-year Bonds
- Hong Kong to Sell HK$0.5 Billion 15-year Bonds
- China to Sell 100 Billion Yuan 2035 Bonds
- China to Sell 85 Billion Yuan 2030 Bonds
- China to Sell 145 Billion Yuan 2032 Bonds
- China to Sell 40 Billion Yuan 91-Day Bills
- Philippines To Sell PHP 25.0Bln 2044 Bonds (PH0000058786**)
- Philippines To Sell PHP 15.0Bln 2028 Bonds (PIBD0728D649*)
- Malaysia to Sell MYR5 Billion 2030 Bonds
- Vietnam To Sell VND 7.0Tln 2035 Bonds; (TD2535022)
- Vietnam To Sell VND 2.0Tln 2030 Bonds; (TD2530009)
- Vietnam To Sell VND 1.0Tln 2040 Bonds; (TD2540037)
- Vietnam To Sell VND 0.5Tln 2045 Bonds; (TD2545046)
- MAS to Sell S$1.5 Billion 249-Day Bills
- MAS to Sell S$22.1 Billion 83-Day Bills
- MAS to Sell S$15.5 Billion 25-Day Bills
- India to Sell 50 Billion Rupees 182-Day Bills
- India to Sell 50 Billion Rupees 364-Day Bills
- India to Sell 90 Billion Rupees 91-Day Bills
- South Korea to Sell 2 Trillion Won 63-Day Financial Bills
- Indonesia To Sell 2029 Sukuk Bonds (PBSG001)
- Indonesia To Sell 2028 Sukuk Bonds (PBS030)
- Indonesia To Sell 2027 Sukuk Bonds (PBS003)
- Indonesia To Sell 2039 Sukuk Bonds (PBS034)
- Indonesia To Sell 178D Sukuk Bills (SPNS10112025)
- Indonesia To Sell 2049 Sukuk Bonds (PBS038)
- Indonesia To Sell 270D Sukuk Bills (SPNS10022026)
ASIA: Coming Up in Asia Today
May-13 22:24
| 1800GMT | 0700HKT | 0900AEDT | South Korea Unemployment SA APR |
| 1800GMT | 0700HKT | 0900AEDT | BBG May Philippines Economic Survey |
| 0130GMT | 1430HKT | 1630AEDT | India Wholesale Prices YoY APR |
