JGB TECHS: (U5) Undoes CPI Rally
- 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: 137.87 @ 15:31 BST Aug 14
- 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 further Thursday, 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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ASIA: Government Bond Issuance Today
- Bank of Korea to Sell KRW1.2tn 3-Year Bonds
- Vietnam To Sell VND 2.0Tln 2040 Bonds; (TD2540037)
- Vietnam To Sell VND 7.0Tln 2035 Bonds; (TD2535027)
- Vietnam To Sell VND 0.5Tln 2030 Bonds; (TD2530009)
- Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
- Thailand to Sell THB15bn of 2040 Bonds
- Thailand to Sell THB7 bn 2072 Bonds On Jul 16
- 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 367D SUVBI Bills
- Bank Indonesia to Sell 186D SUVBI Bills
- India to Sell INR90bn 91-Day Bills
- India to Sell INR60bn 182-Day Bills
- India to Sell INR50bn 364-Day Bills
ASIA: Coming Up in Asia Today
| 0000GMT | 0700HKT | 0900AEDT | SK Unemployment Rate SA June |
| 0820GMT | 1520HKT | 1720AEDT | BI - Rate |
source: Bloomberg Finance LP / MNI
NZD: NZD/USD - Breaks Its Support, Focus Now Turns To 0.5850
The NZD/USD had a range overnight of 0.5939 - 0.6006, Asia is trading around 0.5945. The USD has surged higher on the back of the US CPI showing clear signs that tariffs are beginning to impact the core goods data. US yields and the USD have both reacted as the market further reduces rate cut expectations for the year. Risk is opening on the backfoot this morning, E-Mini -0.20%, NQ -0.20%. NZD/USD has broken below its recent support just below 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.
- NZ Milk Prices Rise At Auction For The First Time Since May : Overnight the fortnightly whole milk powder auction saw prices rise 1.7% versus the previous auction result, per GDT. This put prices back to $3928, from $3859 prior.
- (Bloomberg) -- “New Zealand's 2Q CPI Uptick Won't Prevent Further RBNZ Rate Cuts. There's upside risk to our forecast for a softer 2Q inflation reading in New Zealand. The uptick in inflation should be short-lived, and won't prevent the RBNZ from delivering more support for growth with further reductions in the official cash rate.”
- Options : Closest significant option expiries for NY cut, based on DTCC data: 0.6000(NZD382m). Upcoming Close Strikes : 0.5932(NZD317m July18). - 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 : Non Resident Bond Holdings
Fig 1: NZD/USD Spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
