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U.S. 10-year Treasury futures rose 12 basis points, and 30-year Treasury futures rose 17 basis points.1. According to Ukrainian media citing an Air Force spokesperson, Russia launched a Hazel missile at the Kyiv region of Ukraine. 2. The Russian Ministry of Defense stated that in response to Ukrainian attacks on Russian civilian infrastructure, the Russian military used multiple types of missiles, including Hazel, Iskander, Kinzhal, and Zircon, as well as attack drones, to strike Ukrainian military targets, excluding civilian infrastructure. 3. The Ukrainian Air Force stated that Russia used 600 drones and 90 missiles to attack Ukraine. 4. Ukrainian President Zelenskyy stated that the recent Russian attacks have injured at least 83 people, with others killed. 5. Leaders of several European countries condemned Russias use of the Hazel missile against Ukraine. 6. The Security Service of Ukraine (SBU) stated that its Alpha Special Operations Center attacked a fuel pumping station in Vladimir Oblast, Russia. 7. A Russian diplomat stated that recommendations have been drafted regarding the 27-point plan proposed by the US for resolving the Ukrainian crisis and are ready to be submitted. 8. EU High Representative for Foreign Affairs and Security Policy Karas: Next week, EU foreign ministers will discuss how to increase international pressure on Russia.The Shenzhou-23 astronaut crew successfully entered the "Tiangong" space station, marking the eighth "space reunion" of Chinese astronauts.On May 25th, Japanese financial regulators are urging domestic listed companies to allocate more of their cash reserves to long-term business investments, rather than rewarding shareholders through share buybacks and increased dividends. Tatsufumi Shibat, a senior official at the Financial Services Agency, stated in an interview that, in addition to cash, executives should consider using cross-shareholdings and real estate assets to promote growth. He pointed out that regardless of where Japanese companies are on their growth curve, they tend to prioritize shareholder returns. "I dont think investors would make that demand of companies in a rapid growth phase," he said in the interview. Shifting the vast wealth held by businesses and households to fund future expansion is one of the core pillars of Prime Minister Sanae Takaichis efforts to revitalize the Japanese economy. She has long criticized the cash reserves on corporate balance sheets.On May 25th, US Secretary of State Marco Rubio, who was visiting India, told the media on the 24th that a draft agreement between the US and Iran had gained the support of several Middle Eastern countries. Rubio said that seven to eight countries in the region currently support the draft, and the US is prepared to continue pushing it forward. Rubio also stated that nuclear negotiations are highly specialized, and "its impossible to settle a nuclear matter in 72 hours by writing it on the back of a napkin," but President Trumps commitment to preventing Iran from acquiring nuclear weapons should not be questioned. Earlier that day, Trump posted on social media that negotiations with Iran were "going in an orderly and constructive manner," and that he had informed US representatives that there was no need to rush into an agreement with Iran.

NZD/USD Price Analysis: Protects NZ Inflation-Induced Support Break; 0.6140 in Sight

Daniel Rogers

Apr 20, 2023 13:51

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During the mid-Asian session on Thursday, NZD/USD bears maintain control at the lowest levels in five weeks while defending New Zealand (NZ) losses caused by inflation near 0.6160. This justifies not only the weaker-than-anticipated New Zealand inflation, but also the recent break of one-month-old horizontal support, which is now immediate resistance, as well as the bearish MACD signals.

 

As measured by the Consumer Price Index (CPI), the Reserve Bank of New Zealand (RBNZ) policy purists were unpleasantly surprised by New Zealand's (NZ) first-quarter (Q1) inflation. Despite this, the Quarter-over-Quarter change in the New Zealand Consumer Price Index (CPI) decreases from 1.7% and 1.4%, respectively, to 1.2%.

 

Following the publication of disappointing data, the NZD/USD pair breached a one-month-old horizontal support level, which is now acting as a barrier near 0.6170. The bearish MACD signals are now directing NZD/USD traders toward a horizontal support level that has been in place for 1.5 months and is located near 0.6140.

 

If the NZD/USD bears remain dominant above 0.6140, the 2023 low of 0.6085 cannot be ruled out.

 

The 200-day simple moving average hurdle of 0.6220 becomes crucial for NZD/USD investors to return.

 

If the NZD/USD pair remains above 0.6220, a run up to the previous weekly high around 0.6315 and then to the monthly high of 0.6386 cannot be ruled out.