MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

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

NZDJPY Rises To 5-Month High, USD Index Extends Gains

FOREX
  • The USD index traded on the front foot on Wednesday, eclipsing last week’s highs during early European trade and then consolidating these gains in US hours just below the 103.00 mark. Major equity benchmarks have rallied, underpinned by post-Biden-Congressional leadership meeting rhetoric pointing to some limited positive developments. Firmer stocks have been unable to dent the optimism for the greenback, but this has in turn left the Japanese Yen as the poorest performer in G10.
  • USDJPY currently trades +0.88% approaching the APAC crossover and looks set to extend its winning streak to five trading sessions. More buoyant price action for major indices and higher front-end US yields appear to be underpinning the bid for cross/JPY, most notably seen by the 1.30% climb for NZDJPY.
  • Resistance for USDJPY at 136.63, the May 3 high, has been cleared and this signals scope for a continuation towards 137.77, the May 2 high and the 2023 highs of 137.91. A break of this resistance zone would strengthen bullish conditions and would open the potential for a move to 139.59/140.00. On the downside, initial firm support is seen at 134.96, the 20-day EMA.
  • The NZD outperformance comes off the back of a revision higher for RBNZ rate expectations at ANZ, who now see the OCR hitting 5.75% at its peak.
  • USD/CNH reached as high as 7.0229 on Wednesday, the best level for the pair dating back to early December last year. When it comes to USD/CNY flows Citi noted that “exporter activity remains muted as high U.S. rates give them less incentive to sell the USD. There might be a bumpy road ahead as profit taking activities and expectations of potential intervention may self-fulfil around CNY7.00 level.”
  • Australian unemployment headlines the overnight docket on Thursday, along with the New Zealand annual budget release. US Philly Fed Manufacturing and existing home sales are notable US releases.
Energy BulletsCommodities
Energy BulletsCommodities

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.