NORWAY: Statistics Norway Only Expects One More Norges Bank Cut This Year

• RES 3: 96.501 - 76.4% of the Mar 14 - Nov 1 ‘23 bear leg
• RES 2: 96.207 - 61.8% of the Mar 14 - Nov 1 ‘23 bear leg
• RES 1: 95.960 - High Apr 7
• PRICE: 95.710 @ 15:17 BST Aug 15
• SUP 1: 95.415/95.300 - Low May 15 / Low Jan 14  
• SUP 2: 95.275 - Low Nov 14  (cont) and a key support
• SUP 3: 94.707 - 1.0% 10-dma envelope

Aussie 10-yr futures received a boost from the US Treasury rally that followed both the recent poor NFP print as well as Tuesday’s inflation number. While this impact faded into the close of the week, 10-year futures remain toward the top end of the recent range. To the upside, next resistance is at 96.207, a Fibonacci retracement point. Next support undercuts at 95.420 (pierced), the Feb 13 low, ahead of 95.275, the Nov 14 low and a key support. Clearance of this level would strengthen a bearish condition. 

• USD slipped against all others Friday, with a poor set of retail sales and Uni of Michigan sentiment numbers meeting a higher-than-expected import price index to further stimulate concerns over a stagflarionary phase in the US economy. The USD Index trades either side of the 50-dma which, notably, has begun to flatten out  after maintaining a solid downtrend throughout 2025.
• JPY is the strongest currency in G10, extending the breakout and bearish  conclusion of the consolidation phase in USD/JPY. Recent weakness puts the  price through support drawn off the early August lows as well as 146.71, a  key retracement. Price action this week marks a full reversal of the  previously overbought condition, keeping the downside argument in focus.
• Anticipation ahead of the Putin-Trump meeting has reached fever pitch. Footage showing the Presidents shaking hands in Alaska has helped ease concerns over a hostile meeting, but it's the outcomes that will matter to markets - particularly as equities hold at alltime highs. Any signs of progress toward a ceasefire would be warmly received by risk sentiment - although both Trump and Putin cautioned against a optimistic outcome in comments to press.  
• We noted earlier in the week the pressure building on USD/HKD, with price action not matching the pattern of HKMA intervention. That move extended overnight, and  is still building at typing, putting spot down to new pullback lows of 7.8119 shortly after the European open. Overnight swap rates have surged further  still Friday (hitting 1.7% at typing), well ahead of the 0.3% prevailing rate  mid-week and should continue to support a recovery in HIBOR fixes ahead.  Today's 1m HIBOR fixed higher by 41bps, hitting 1.45% for the highest fix  since mid-May. It's these factors that should work against the HKD carry  trade (selling HKD, buying USD), evident in the further tightening of the HKD  forward discount today: down 975 points from as high as 1270 this month.
• Focus in the coming week shifts to Jackson Hole and Powell's comments on Friday. With the September meeting still in flux - any conviction toward tipping the board toward a rate cut at the next FOMC will be carefully watched, but it's a hawkish outturn that could be more consequential for markets, as OIS prices a near 90% chance of easing on September 17th. 

• MNI: US TSY TICS NET FLOWS IN JUN +$77.8B
• US TSY TICS NET L-T FLOWS IN JUN +$150.8B