Bond Flows Eyed

NZD/USD hovering around the unchanged mark, last printing $0.6640 after the cross managed to lodge relatively modest gains on Thursday amidst the Powell-inspired vol.

• As mentioned elsewhere, flows from offshore surrounding this week's NZGB syndication, which will settle next week, are providing some support to the NZD, after kiwi bulls managed to capitalise on short positioning earlier in the week.
• Also worth noting that Wednesday saw FTSE Russell flag that the NZGB market is now considered for inclusion in the its heavily tracked bond indices, a formal announcement will be made on 24 September, with any inclusion set to provide NZD supportive inflows.
• NZ Treasury commentary surrounding retail sales provided no surprises, while the Stats NZ filled jobs data for July provided little in the way of notable movement.
• The flow and positioning dynamic has manged to outweigh some idiosyncratic risk this week, with particular focus on the cyber attacks on the NZX exchange.
• Yesterday's high at $0.6675 marks the initial point of resistance, with the Aug 7 high at $0.6691 representing the next point of resistance through there. Not much in the way of support until the 21-DMA at $0.6591.
• Focus on the RBNZ's LSAP schedule and sizing for next week, due to be released at the top of the hour.