MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI BRIEF: Former BOC Dep Beaudry Sees 2.75%-3% Rate In 2025

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NZD: NZD/USD Tests Yearly Highs On China Optimism

NZD
USGlobalAPACNew ZealandBulletMarketsForeign Exchange BulletsRegionNorth America
  • The NZD was the top G10 currency on Tuesday, aided by China stimulus news which has filtering through to risk sensitive currencies such as the NZD. the NZDUSD closed 1.16% higher with the latest leg higher gaining momentum through the August highs around 0.6300. The morning high at 0.6328 matches the year’s peak from Jan 02, with 0.6369 now the most obvious short-term target for the move.
  • The currency was also supported by lower US yields, with the short-end falling about 5bps following weaker-than-expected US consumer confidence which pushed the USD index back into its weakening trend, closing the session down 0.46%.
  • The NZD has now rallied 3.31% from its September lows.
  • The pair is now testing the yearly highs at 0.6340 which a break above here opening a move to June 2023 highs at 0.6369, with 0.6400 the next target, to the downside 0.6260 (Sep 24 lows) and 0.6217 (20-day EMA) are key supports. The RSI is now at 69 nearing overbought territory, while the MACD is also green and climbing, further suggesting growing buying pressure.
  • RBNZ dated OIS pricing was little changed on Tuesday, the market is pricing 42bps of cuts at the next meeting in October, and 88bps of cuts into year-end.
  • The NZ-US 2yr was volatile on Tuesday, swinging 10bps only to close little changed at 19bps
  • Expiries: 0.6320 ($522.15m) Sept 25, 0.6340 ($608.83m), 0.6330 ($521.34m), 0.6225 ($526.66m) Sep 26
  • The calendar is empty today
232 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The NZD was the top G10 currency on Tuesday, aided by China stimulus news which has filtering through to risk sensitive currencies such as the NZD. the NZDUSD closed 1.16% higher with the latest leg higher gaining momentum through the August highs around 0.6300. The morning high at 0.6328 matches the year’s peak from Jan 02, with 0.6369 now the most obvious short-term target for the move.
  • The currency was also supported by lower US yields, with the short-end falling about 5bps following weaker-than-expected US consumer confidence which pushed the USD index back into its weakening trend, closing the session down 0.46%.
  • The NZD has now rallied 3.31% from its September lows.
  • The pair is now testing the yearly highs at 0.6340 which a break above here opening a move to June 2023 highs at 0.6369, with 0.6400 the next target, to the downside 0.6260 (Sep 24 lows) and 0.6217 (20-day EMA) are key supports. The RSI is now at 69 nearing overbought territory, while the MACD is also green and climbing, further suggesting growing buying pressure.
  • RBNZ dated OIS pricing was little changed on Tuesday, the market is pricing 42bps of cuts at the next meeting in October, and 88bps of cuts into year-end.
  • The NZ-US 2yr was volatile on Tuesday, swinging 10bps only to close little changed at 19bps
  • Expiries: 0.6320 ($522.15m) Sept 25, 0.6340 ($608.83m), 0.6330 ($521.34m), 0.6225 ($526.66m) Sep 26
  • The calendar is empty today