NZD/USD Holds Above 0.6100, House Sales & Prices Fall

The NZD/USD showed strength on Friday, hitting a high of 0.6126 before finishing the session up 0.39% at 0.6119. The strength on Friday was largely tied to weakness in the USD with the BBDXY closing down 0.35% at 1,249.55.

• Obviously the focus has been on the Trump assassination attempt, the USD is higher against all G10 currencies this morning, liquidity will be on the lighter side with Japan out today.
• During the US session on Friday, PPI data came in mixed, while U. of Mich. Sentiment missed estimates. PPI final demand: 0.22% M/M (cons 0.1) in June after -0.03 (revised up from initial -0.25). Net upward revisions worth 0.18pps, U. of Mich. Sentiment was 66.0 vs 68.5 expected.
• The NZD/USD saw all gains made during the Asian & European session on Friday, trading sideways throughout the US session. We have opened down 0.10% in early morning trading.
• The CFTC reported a decline in speculative net positions for the NZD to 25.9K from 30.7K, indicating a shift in market sentiment.
• Earlier, REINZ House Sales fell 25.6% y/y in June while House prices fell 5.3% y/y in June.
• Immediate support is seen at 0.6100 (round number), a break of 0.6084 (200-day EMA) would open up a move to 0.6048 (July 2 lows) and below here 0.6000 (May 14 lows). Initial resistance is at 0.6135 (July 11 highs) above here 0.6154 (July highs) the next target.
• The NZ-US 2yr swap is 3bps lower at 13bps.
• Expiries: no major strikes today, upcoming notable strikes: 0.6040 (NZD500m July 18), 0.5900 (NZD355.5m July 17)
• Today, Performance Services Index at 8:45 AEST