FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Recovers Off Fresh Cycle Lows, Manufacturing PMI Prints Soon

NZD

NZD/USD currently sits just under $0.5640 little changed from late NY levels. We touched a fresh cycle low at $0.5512 post the US CPI print, but rebounded strongly from there, as the recovery in broader risk appetite hit USD sentiment (DXY off 0.75% to 112.47).

  • U.S. CPI rose to a 40 year high in September, firming the case for the Fed to continue on its hawkish rate hike path. Still, US Equities roared back from worst levels, the S&P 500 closed up 2.6% after recovering 5% off its post CPI lows.
  • Despite the impressive overnight rebound, NZD/USD remains in a technical downtrend, with the cyclical lows breached, bears can target the March 2020 base at $0.5470. Conversely, bulls likely need to see a break of the 20-day EMA at $0.5723 to start turning the tide in their favour.
  • NZD/USD 1-week vol. continued to soften, currently printing at 18.75%, off the recent cycle high at 21.61%.
  • OIS indicates a terminal RBNZ rate of ~5.00%, up 10 bps from levels seen late yesterday.
  • Domestically, we have the September manufacturing PMI due out shortly, the last print came in at 54.9.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

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.