NZD: NZD/USD - Trades Heavy Below 0.6000, The USD Though Is Key
The NZD/USD had a range overnight of 0.5913 - 0.5970, Asia is trading around 0.5945. The USD had a bit of a roller coaster of a ride yesterday as rumours of a potential Powell sacking gained traction, this was later denied by Trump, though he also left the door open to Powell being dismissed for fraud. The price action was very clear though, if Powell is removed the USD will be swiftly sold. Risk is opening on the backfoot this morning, E-Mini -0.14%, NQ -0.13%. NZD/USD has broken below its recent support just under 0.6000 and the price action now suggests we could have a look back towards the important 0.5850 support area. Look for supply now on bounces back towards 0.6000 to cap initially. Any hint of Powell being removed though would clearly see the NZD surge higher once more.
- Bloomberg - “President Trump said: “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud.” A White House official, speaking on the condition of anonymity earlier Wednesday, said they expected Trump to soon move against the Fed chief. Some lawmakers also left that Tuesday evening meeting with that impression, and Trump acknowledged that he had polled the participants about dismissing Powell.”
- Bloomberg - “The US will bar companies from connecting submarine communication cables that include any Chinese technology or equipment, the FCC chair told the FT.”
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.5932(NZD317m July18), 0.6000(NZD300m July22). - BBG
- CFTC Data shows Asset Managers added slightly to their newly built longs in NZD +9229, the Leveraged community added slightly to their shorts last week -8654.
- Data/Event : Food Price MoM
Fig 1: NZD/USD Spot Hourly Chart
Source: MNI - Market News/Bloomberg Finance L.P
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ASIA: Government Bond Issuance Today
- Hong Kong to Sell HK$13 Bn 182-Day Bills
- Hong Kong to Sell HK$61.909 Bn 91-Day Bills
- Bank of Thailand to Sell THB60 Bn of 91-Days Bills
- Bank of Thailand to Sell THB45 Bn of 364-Days Bills
- Bank Indonesia to Sell 31D SVBI Bills
- Bank Indonesia to Sell 185D SVBI Bills
- Bank Indonesia to Sell 276D SVBI Bills
- Bank Indonesia to Sell 94D SVBI Bills
- Bank Indonesia to Sell 367D SVBI Bills
- MAS to Sell S$22.5 Bn 84-Day Bills on June 17
- MAS to Sell S$15.6 Bn 28-Day Bills on June 17
- Philippines To Sell PHP 30.0Bln 2035 Bonds (PH0000060345*)
- Indonesia To Sell 2035 Bonds (FR0103)
- Indonesia To Sell 2045 Bonds (FR0107)
- Indonesia To Sell 2030 Bonds (FR0104)
- Indonesia To Sell 2054 Bonds (FR0102)
- Indonesia To Sell 2040 Bonds (FR0106)
- Indonesia To Sell 88D Bills (SPN03250915)
- Indonesia To Sell 2064 Bonds (FR0105)
- Indonesia To Sell 350D Bills (SPN12260604)
ASIA: Coming Up in Asia Today
| 0130GMT | 0830HKT | 1030AEDT | Singapore Electronic Exports YoY MAY |
| 0130GMT | 0830HKT | 1030AEDT | Singapore Non-oil Domestic Exports YoY MAY |
| 0930GMT | 1630HKT | 1830AEDT | Hong Kong Unemployment Rate SA MAY |
AUD: AUD/USD - Trying To Break Higher
The AUD had a range overnight of 0.6490 - 0.6552, Asia is opening around 0.6525. The AUD bounced nicely overnight and is back to retesting its recent highs. This comes as US stocks continue to confound and grind higher and the USD’s reprieve was very short-lived and has come back under pressure.
- (Bloomberg) -- Australian Treasurer Jim Chalmers notes that higher oil prices pose a risk to both inflation and global growth, and that Australia's central bank may cut interest rates to mitigate the impact of the global volatility.”
- “US State Department approves a possible foreign military sale to Australia at an estimated cost of $2 billion. The sale includes F/A-18F and EA-18G sustainment support and related equipment, the statement says.”
- The AUD saw good demand sub 0.6500 and is back to testing the 0.6550 area.
- Price remains in the 0.6350 - 0.6550 range for now, a sustained break above 0.6550/0.6600 is needed for the move higher to accelerate. The way the USD is trading across the board points to this being tested at some point.
- Expect buyers to continue to be around on dips while the support in the AUD/USD holds, a close back below 0.6350 is needed to challenge the newly formed uptrend.
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.6600(AUD 1.1b June 19)
- CFTC Data shows Asset managers maintaining their shorts, the Leveraged community though continued to build up their shorts again.
Data/Event: Westpac Leading Index, Tomorrow is Unemployment
Fig 1: AUD/USD spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
