JGB TECHS: (U5) Returns to Bottom-End of Range
- RES 3: 147.74 - High Jan 15 and bull trigger (cont)
- RES 2: 146.53 - High Aug 6
- RES 1: 141.48/142.95 - High May 2 / High Apr 7
- PRICE: 137.48 @ 16:23 BST Aug 21
- SUP 1: 137.32 - Low Jul 25
- 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 faded again into the Thursday close, undoing a large part of the CPI-triggered rally. The first important resistance to watch remains 141.48, the May 2 high. A break of this level would be viewed as an early bullish signal. A return lower would signal scope for an extension towards 136.57, a Fibonacci projection.
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NZD: NZD/USD - Moves Back To 0.6000 As The USD Comes Back Under Pressure
The NZD/USD had a range overnight of 0.5941 - 0.6004, Asia is trading around 0.5995. The pair had a decent move higher in the New York session as the USD came back under pressure with US yields pushing lower. Depending what your view is this 0.6000/0.6050 area looks an attractive fade, the danger though is the USD which is looking sickly once more and should it capitulate the NZD could build momentum higher again. Price will need a sustained break back above the 0.6025/50 area to signal a potential base might be in place.
- “US tariffs — now averaging 40% overall — threaten a heavy blow to China’s industry. Bloomberg Economics’ analysis of profit margins of China’s firms suggests only five of 33 industrial sectors — accounting for a meager 2.4% of GDP — can absorb current levies that apply to their exports.” - BBG
- Bloomberg - “China says it now allows wild seafood imports from New Zealand. Wild seafood imports from New Zealand are allowed for companies from the island country that meet the relevant Chinese food safety requirements, the General Administration of Customs says.”
- Options : Closest significant option expiries for NY cut, based on DTCC data: none. Upcoming Close Strikes : 0.6010(NZD302m July 24). - BBG
- CFTC Data shows Asset Managers slightly reduced their newly built longs in NZD +8192, the Leveraged community has continued to reduce their shorts last week -6744.
- Data/Event : Bloomberg July NZ Economic Survey
Fig 1: NZD/USD Spot 120min Chart
Source: MNI - Market News/Bloomberg Finance L.P
ASIA: Government Bond Issuance Today
- Hong Kong to Sell HK$2.0 Billion 3-year Bonds
- Hong Kong to Sell HK$1.75 Billion 10-year Bonds
- Vietnam To Sell VND 7.0Tln 2035 Bonds; (TD2535027)
- Vietnam To Sell VND 0.5Tln 2030 Bonds; (TD2530010)
- Vietnam To Sell VND 2.0Tln 2040 Bonds; (TD2540037)
- Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
- Thailand to Sell THB32bn of 2030 Bonds
- Thailand to Sell THB9bn of 2050 Bonds
- Bank Indonesia to Sell 367D SUVBI Bills
- Bank Indonesia to Sell 94D SUVBI Bills
- Bank Indonesia to Sell 31D SUVBI Bills
- Bank Indonesia to Sell 276D SUVBI Bills
- Bank Indonesia to Sell 185D SUVBI Bills
- China to Sell CNY60bn 182-Day Bills
- India to Sell INR60bn 182-Day Bills
- India to Sell INR90bn 91-Day Bills
- India to Sell INR50bn 364-Day Bills
ASIA: Coming Up in Asia Today
| 0600GMT | 1300HKT | 1500AEDT | Singapore CPI YoY JUNE |
| 0600GMT | 1300HKT | 1500AEDT | Singapore CPI NSA MoM JUNE |
| 0600GMT | 1300HKT | 1500AEDT | Singapore CPI Core YoY JUNE |
| 0900GMT | 1600HKT | 1800AEDT | Taiwan Industrial Production YoY JUNE |
source: Bloomberg Finance LP / MNI
