MNI: BRAZIL CENTRAL BANK HOLDS SELIC RATE AT 10.50%

MNI: Rough Transcript of Powell's July Press Conference

MNI: Comparison of Powell's Opening Statement - July vs June

MNI China Daily Summary: Wednesday, July 31

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 433.0M JUL 26 WK

MNI: US NAR JUN PENDING HOME SALES INDEX 74.3 V 70.9 IN MAY

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

NZD/USD Continues Bounce Off YTD Lows, Back Above 0.5950

NZD
Homepagemarkets-real-timeBulletMarketsForeign Exchange Bullets

The NZD had another strong session, trading up 0.81% to 0.5951. In the FX space on Wednesday focus was on the Yen after it rallied 1.90% on the back of the BoJ decision, the Fed left rates on hold but kept the door open for a cuts in September, risk markets rallied overnight with the Nasdaq up about 2.60%.

  • The NZD/USD broke above initial support of 0.5950 earlier and is now 1.50% higher Monday's lows of 0.5858.The RSI indicator has jumped from 24 to 40 over the past few days indicating bearish momentum is slowing while the MACD is showing decreasing red bars.
  • Looking at technical levels, a break below 0.5888 (July 31 lows) would open a move to 0.5858 (July 29 / ytd lows). Initial resistance is 0.5990 (20-day EMA).
  • House prices fell for the fifth consecutive month in July, dropping 0.5% from June, due to rising unemployment and a sluggish economy. Since February’s peak, values have declined by 2.5%, remaining about 16% below the January 2022 peak, but still 19% higher than pre-COVID levels.
  • The OIS market is a softer into the August meeting with just a 64.5% chance of a cut now, while we have firmed into year-end with a cumulative 79.2bps of cuts now priced.
  • The NZ-US 2yr swap spread have bounced off recent lows of -16bps, and now sits at 2.5bps.
  • Today, New Zealand has the 30. 34 & 37 Bonds auction.
236 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 had another strong session, trading up 0.81% to 0.5951. In the FX space on Wednesday focus was on the Yen after it rallied 1.90% on the back of the BoJ decision, the Fed left rates on hold but kept the door open for a cuts in September, risk markets rallied overnight with the Nasdaq up about 2.60%.

  • The NZD/USD broke above initial support of 0.5950 earlier and is now 1.50% higher Monday's lows of 0.5858.The RSI indicator has jumped from 24 to 40 over the past few days indicating bearish momentum is slowing while the MACD is showing decreasing red bars.
  • Looking at technical levels, a break below 0.5888 (July 31 lows) would open a move to 0.5858 (July 29 / ytd lows). Initial resistance is 0.5990 (20-day EMA).
  • House prices fell for the fifth consecutive month in July, dropping 0.5% from June, due to rising unemployment and a sluggish economy. Since February’s peak, values have declined by 2.5%, remaining about 16% below the January 2022 peak, but still 19% higher than pre-COVID levels.
  • The OIS market is a softer into the August meeting with just a 64.5% chance of a cut now, while we have firmed into year-end with a cumulative 79.2bps of cuts now priced.
  • The NZ-US 2yr swap spread have bounced off recent lows of -16bps, and now sits at 2.5bps.
  • Today, New Zealand has the 30. 34 & 37 Bonds auction.