CNH: USD/CNH Above 7.1800, But CNY Fixing Helping Outperformance On Crosses
USD/CNH tracks near 7.1840 in early Friday dealings, after posting little net change for Thursday's ...
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUSSIE 3-YEAR TECHS: (U5) Rallies Off Lower Levels
- RES 3: 97.190 - High May 5 2023
- RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg
- RES 1: 96.860 - High Apr 07
- PRICE: 96.630 @ 15:00 BST Jun 17
- SUP 1: 95.900 - Low Jan 14
- SUP 2: 95.760 - Low 14 Nov ‘24
- SUP 3: 95.480 - Low Jan 11 2023 and a major support
Aussie 3-yr futures rallied off lower levels on the recent RBA rate cut and guidance, however prices remain south of the 50-dma for now. The recent rally took out resistance at 96.730, the Sep 17 ‘24 high, however momentum faltered, leaving 96.860 resistance intact. This remains the key level to the upside. Instead, a continuation lower would strengthen a bearish theme. This would refocus attention on 95.760, the 14 Nov ‘24 low. Conversely, a reversal higher would refocus attention on 96.860, the Apr 7 high.
ASIA: Coming Up In Asia Pac Markets On Wednesday
| 2345BST | 0645HKT | 0845AEST | New Zealand Q1 Current Account |
| 0050BST | 0750HKT | 0950AEST | Japan May Trade Data |
| 0050BST | 0750HKT | 0950AEST | Japan Apr Core Machine Orders |
| 0130BST | 0830HKT | 1030AEST | Australia Westpac Leading Index |
| 0200BST | 0900HKT | 1100AEST | Australia 2035 Bond Sale |
| 0400BST | 1100HKT | 1300AEST | New Zealand May Non-resident Bond Holdings |
CANADA DATA: Housing Indicators Mixed-To-Weak In May
Housing starts remained steady at 279.5k annualized in May (280.2k prior), remaining near 2-year highs for a second consecutive month and defying expectations for a sharp drop to 247.5k. Alongside this, existing home sales picked up in May by 3.6% (0.1% prior, no consensus), the strongest rise since October 2024. Sales-to-new listings ticked up 0.2pp to 47.0%, a 3-month high, with months of inventory dipping 0.1 to 4.9.
- The CREA expressed cautious optimism: “It’s only one month of data, and one car doesn’t make a parade, but there is a sense that maybe the expected turnaround in housing activity this year was just delayed for a few months by the initial tariff chaos and uncertainty.”
- However sales remain below levels seen throughout most of the last 3 years, not to mention the pandemic boom. And the aggregate HPI composite price benchmark however fell $1.5k to $690.9k, the 5th consecutive decline for a fresh post-May 2021 low (and a 3.7% Y/Y drop, now 17.2% from peak).
- The jump in housing starts is also due to strong gains in urban multifamily housing (34% rise in April, 1% in May), with urban single starts soft. And building permits remain a weak point, dropping 6.6% M/M and 14.0% Y/Y in April, boding poorly for future activity.
- The BOC's latest meeting deliberations noted that while "Housing activity and government spending had declined...they expected some support going forward from new housing policies", presumably including a GST rebate for first time homebuyers.
