Latest Forex Research
Flow fallacies and the AUD
We break down capital flows data and conclude that ‘flows’ will only push AUD through parity if: the mining investment boom returns; or interest rate differentials between Australia and
Stellar post-RBNZ kiwi move!
EURUSD: Outside 1.3522/59 needed for direction. Do nothing inside 1.3522/59, but go with the flow on a break, either for return to the post ECB-flow of 1.3503 and
UBS Morning Adviser
BoK holds as widely expected, outlook and statement largely carried over As unanimously predicted by forecasters, the Bank of Korea (BoK) held policy rates at 2.50%.
FX Daily
In the US we expect growth in retail sales to have remained relatively subdued in Mayas less boost from weather-related pent-up demand probably continued to weigh a bit.
FI Eye-Opener: Too little Fed tightening in prices
Yields headed higher early yesterday, but profit taking in the equity markets finally pushed yields down, though only marginally.
Daily Market Technicals
EUR/USD continues to consolidate at the lower end of last week’s range with bearish pressure dominating.
AUD/USD Analysis
Aussie slightly lower on the day after spending most of the session in a narrow $0.9370/90 range, except for two brief moves to establish the highs and lows.
GBP/USD Analysis
The pair closed in NY Wednesday at $1.6791 after rate had extended its recovery off early session lows of $1.6738 to $1.6812 in NY (post London fix).
EUR/USD Analysis
The pair closed in NY Wednesday at $1.3533 after rate had bounced between $1.3525-55 in the US session, within a slightly wider intraday range of $1.3522-57.
USD/JPY Analysis
JPY started at Y102.07 in Asia Thursday from a NY range of Y101.87-Y102.07, the spot touched Y102.10 before sliding lower to hit session low of Y101.97 and surged to session high of Y102.15.
Labour Force – May 2014
Employment fell by 4.8k over May following a downwardly revised 10.3k lift in April.
India GDP Update – March Quarter 2014
India’s economy expanded by 4.6% during the year to March quarter 2014. The strong net export performance helped to compress the Current Account Deficit to USD32.3bn,