Positive Sentiment Lends Support

Risk-on sentiment has lent support to NZD/JPY in early Asia-Pac trade, as U.S. e-minis have registered some marginal gains. The rate has added 25 pips and now changes hands at Y77.24, after topping out at Y77.25.

• An "overwhelming majority" of NZIER Shadow Board "thinks monetary policy should be tightened within the coming year." Meanwhile, Kiwibank cast doubt on a potential OCR hike in November. Its analysts noted that "it feels too early" and they "need to see a stronger for longer lift in wages growth."
• NZ retail card spending rose 0.9% M/M in June after a 1.7% growth in May. Elsewhere, Japanese core machine orders and PPI both grew faster than expected.
• Monetary policy decisions from both central banks are eyed this week. The RBNZ's Monetary Policy Review is due Wednesday, while the BoJ will announce their decision and updated forecasts on Friday.
• A move through Jul 7 high of Y78.12 would bring Jul 6 high of Y78.77 into view. Conversely, bears look for a pullback under Jul 8 low of Y75.98, before targeting the 200-DMA at Y75.55. The latter moving average has been intact since Sep 2020.