NZD: NZD/USD - Slips Lower Testing RBNZ Lows As The USD Correction Extends
The NZD/USD had a range overnight of 0.5734 - 0.5797, Asia is trading around 0.5750. US equities again failed to extend but the USD’s correction continues to build momentum and is now probing some tough resistance. The NZD ran into solid supply back toward 0.5800 and when the USD began to build on its gains the NZD fell away very quickly challenging the RBNZ lows. The NZD remains one of the stand out vehicles to express a short, you just have to decide what against. Rallies should now be faded and while below 0.5800/0.5850 the market will be looking for a potential move back towards the 0.5500/0.5600 area.
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5850(NZD300m Oct 14), 0.5450(NZD421m Oct 15) - BBG
- Data/Event: Business NZ Manufacturing PMI
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
ASIA: Coming Up In Asia Pac Markets On Wednesday
| 2345BST | 0645HKT | 0845AEST | New Zealand July Net Migration |
| 0000BST | 0700HKT | 0900AEST | South Korea August Unemployment Rate |
| 0200BST | 0900HKT | 1100AEST | Australia 2031 Bond Sale |
| 0230BST | 0930HKT | 1130AEST | China August Inflation |
| 0400BST | 1100HKT | 1300AEST | South Korea August Bank Lending To Households |
| 0435BST | 1135HKT | 1335AEST | Japan 5yr Debt Sale |
Source: Bloomberg Finance L.P/MNI
TARIFFS: US Supreme Court To Hear Tariffs Case Starting In November
Wires reporting that the US Supreme Court will hear arguments as soon as early November on the legality of the Trump administration's tariffs imposed this year which were defeated in lower courts. This unusually quick schedule could mean a decision is reached by year-end.
- Per Bloomberg: "The US Supreme Court said it will decide whether the bulk of President Donald Trump’s tariffs are legal, agreeing to quickly review a challenge to his signature economic policy in a case with worldwide financial and political implications. Heeding calls from both sides, the justices said in an order on Tuesday that they will hear arguments in early November, an unusually aggressive schedule that suggests the court will try to resolve the case quickly. The tariffs remain in place for now, even though a federal appeals court ruled that Trump exceeded his authority by imposing them."
- Per WSJ: "The court in a brief order said it would hear the case in early November, a schedule that could put it on course to deliver a ruling before the end of the year."
US INFLATION: MNI US CPI Preview: Data To Shape Fed's Tone On Rate Cuts
We've just published our inflation preview for this week's CPI and PPI data - Download Full Report Here
- August inflation data lands this week, with PPI out first on Wednesday September 10 at 0830ET, followed 24 hours later by the CPI report. Consensus (Bloomberg median) is for core CPI to come in at 0.3% M/M rounded in August, same as July, with the MNI unrounded median looking for 0.32% with a slight lean in the risks toward a rounding-up to 0.4%.
- For PPI, current Bloomberg consensus is for a cooling after July’s hot print, with M/M final demand PPI at 0.3% (0.9% prior) and “core” (ex-food/energy/trade) also at 0.3% (0.6% prior).
