In local morning trade, NZGBs are 4-6bps richer after US tsys finished with a similarly sized move. ...
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The overnight range was 143.98 - 144.77, Asia is currently trading around 144.60. Cross JPY has benefitted from the better performance in risk and US stocks. This has seen the move lower in USD/JPY stall and return to its recent range of 142.00 - 147.00.
Data/Event : Money Stock, Machine Tool Orders
Fig 1 : JPY CFTC Data
Source: MNI - Market News/Bloomberg Finance L.P
JGBs hold above recent lows, however a bearish theme remains intact following the reversal that started Apr 7. A continuation lower would signal scope for an extension towards 136.57, a Fibonacci projection. On the upside, a reversal higher would instead refocus attention on 142.95, the Apr 7 high. The first important resistance to watch is 141.48, the May 2 high. A break of this level would be viewed as an early bullish signal.