Pares Losses As US Tsy Yields Fall

NZD/USD prints at $0.6210/15, the pair was little changed on Monday.

• Falling used car prices in the US, which bolstered hopes of a downside surprise in this week's US CPI figures, weighed on US Tsy Yields and saw the USD pressured in the NY session. Used car prices fell 4.2% in June, their biggest monthly drop in 3 years.
• NZD/USD erased losses of as much as ~0.8% firming into the close with resistance seen at the 200-Day EMA ($0.6223). Recent ranges have persisted with bulls unable to clear the 200-Day EMA and the 20-Day EMA ($0.6167) providing support.
• Bulls immediate focus is on the 200-Day EMA; a break through here opens the high from 23 May ($0.6303). Bears look to break the low from 6 July ($0.6133), which opens the low from 29 June ($0.6051) and year to date lows ($0.5991)
• AUD/NZD continues to consolidate below $1.08 handle, the 20-Day EMA has crossed the 200-Day EMA suggesting more potential downside in the cross.
• New Zealand house-building costs are increasing at the slowest pace in almost three years as higher interest rates and a slowing economy curb demand for new homes. Construction costs rose 0.6% in the three months through June, matching the pace seen in the first quarter and the slowest since the fourth quarter of 2020. More here.
• Cross asset wise; BBDXY fell ~0.2% and 2 Year US Tsy Yields fell ~9bps. S&P500 was ~0.2% higher.
• The local data calendar is empty today.