JPY: USD/JPY - Consolidates Gains Above 157.00

The recent downtrend in whole milk powder prices continued at overnight auction result (which is held twice per month). We fell from $3696 to $3610, a drop of around 2.3%. We are now 17.5% off earlier 2025 highs for this price. The chart below overlays this whole milk powder price versus the Citi terms of trade proxy for NZ. All else equal, the weakness in whole milk prices is suggesting some downside to the terms of trade outlook. This in turn would be less supportive for NZD/USD. The Citi measure is still elevated compared to recent years though.  

Fig 1: New Zealand Whole Milk Prices & Citi NZ Terms Of Trade Proxy 

Source: Citi/Bloomberg Finance L.P/MNI 

• Bank of Korea to Sell KRW1.6tn 3-Year Bonds
• Vietnam To Sell VND 8.0Tln 2035 Bonds; (TD2535024)
• Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
• Vietnam To Sell VND 3.0Tln 2030 Bonds; (TD2530010)
• Vietnam To Sell VND 1.5Tln 2040 Bonds; (TD2540037)
• Bank Indonesia to Sell 182D SUVBI Bills
• Bank Indonesia to Sell 94D SUVBI Bills
• Bank Indonesia to Sell 31D SUVBI Bills
• Bank Indonesia to Sell 367D SUVBI Bills
• Bank Indonesia to Sell 273D SUVBI Bills
• China to Sell CNY55bn 182-Day Bills
• China to Sell CNY55bn 91-Day Bills
• MAS to Sell S$14.5 bn 25-Day Bills
• MAS to Sell S$22.4 bn 83-Day Bills 

source:  Bloomberg Finance LP / MNI