NZD/USD Little Changed, GDT Price Index Plunges

The NZD/USD was little changed on Tuesday, initially selling off during the Asian session and hit sessions lows of 0.6048, before the USD sold off after Federal Reserve Chair Jerome Powell said recent data points to inflation on a downward path, adding that more evidence is needed before interest rates are reduced

• The NZD/USD finished the session 0.03% higher at 0.6078, paring losses made during the Asian session, as trading gets underway on Wednesday we have opened little changed at 0.6077.
• JOLTS job openings surprisingly increased in May to 8.14m (cons 7.95m) but the data did little to jolt the market with the focus on Friday’s NFP report, while the FOMC minutes will be released later today.
• The average price for whole milk powder fell to $3,218 from $3,394 at the previous auction, according to GDT. The weighted average price for all milk products was $3,782 per ton, with the GDT price index dropping 6.9% the second largest drop on record.
• NZ average residential property asking price rose 0.3% m/m to NZ$861,260 in June, the first increase in four months, while the housing stock remained above 30,000 for the fifth consecutive month, indicating stronger buyer bargaining power. Listings fell 2.4% m/m but rose 26% year-on-year.
• Immediate support is seen at 0.6048 (July 2 lows), with a break potentially targeting 0.6000 area (May 9 lows). Resistance is at 0.6108 (20-day EMA), with a breach opening a move towards 0.6148 (June 20 high).
• The NZ-US 2yr swap is down 3bps to 25bps.
• Expiries: No large nearby strikes Wed. Upcoming notable strikes: 0.6130 (NZD720.7m July 4), 0.6135 (NZD494.5m July 8), 0.6250 (NZD436.8m July 5)
• Looking ahead, ANZ Commodity Price at 11:00 AEST.