BONDS: NZGBS: Post-RBNZ Sell-Off Extends After RBNZ Governor Remarks

• MNI: UK APR BRC SHOP PRICES +0% M/M, -0.1% Y/Y

• Gold climbed into the US open to finish ahead having been lower for most part of the trading day.
• Gold finished higher by +0.73% at US$3,343.98, having been as low as $3,268.23 earlier in the day.
• As the USD continues to soften and bond yields rallied ahead of key US economic data on Wednesday, gold jumped as expectations for weaker data grew.
• Overnights’ data release, the Dallas Fed. Manufacturing Activity, fell to its lowest in 5 years with survey respondents showing executives describing the current situation as "chaos" as supply line disruptions decimate activity.
• This has reduced expectations for Wednesday’s data which sees employment , inflation and growth releases.
• Gold had started the week in the Asian trading session on the back foot, trending downwards before the Texas data which has refocused attention on the possibility that already the trade war may be showing up in US data. 

• RES 3: 147.74 - High Jan 15 and bull trigger (cont)
• RES 2: 146.53 - High Aug 6 
• RES 1: 142.95 - High Apr 7
• PRICE: 140.60 @ 16:37 GMT Apr 28
• SUP 1: 139.38 - 1.0% 10-dma envelope
• SUP 2: 136.57 - 1.382 proj of the Jan 28 - Feb 20 - Feb 26 bear leg   
• SUP 3: 134.89 - 2.000 proj of the Jan 28 - Feb 20 - Feb 26 bear leg

JGBs are holding the bulk of the recent strong bullish reversal, rejecting any test of fresh cycle lows for the M5 contract. This defies the bearish momentum studies drawn on the longer-term chart, clearing moving-average resistance to print 142.40 at the new upper level. To the downside, sights are on 136.57, a Fibonacci projection. 144.48 is the medium-term target on any recovery.