Tag Archives: AUD
FX Daily Strategist: Europe
No FX follow-through from Friday’s payrolls report – yet With most European centres closed on Monday, the follow-through in currency markets from Friday’s weaker payrolls report has been limited. US stocks ended the day down, and Treasuries have held Friday’s post-payrolls bid, with 10yr and 30yr bond yields -2bp and -3bp respectively; 2s are unchanged […]
European FX Daily – Chinese exports up, imports down
– European FX leads modest rally vs the USD, Asian equities mixed – Bank of Japan kept policy on hold as expected – China’s export growth higher than expected, imports disappointed – France’s industrial output likely rose in February
AUD suffers as China reports lower imports in March
Asia got busy after the long Easter weekend with a number of key data releases – and there were some surprises! China’s trade data for March astounded with a hefty surplus of $5.35 bln reported versus expectations of another deficit following the $31.48 bln printed in February.
FX Daily Strategist: Europe
US NFP disappoints; asset market reactions suggest global growth under fresh scrutiny Friday’s disappointing 120k payrolls report confirms the Fed’s fears that the strength in employment over the past few months was partly due to seasonal factors. The number itself is not weak; but it is barely enough to hold the unemployment rate constant with […]
FX Daily Strategist: Europe
Risk-USD correlation dependent on source of stresses The correlation between risk and the USD remains somewhat ambiguous: Wednesday saw equity markets lower but a rally in the USD. Where risk-taking is spurred by positive US data, the USD can rally in tandem, with the JPY and the EUR taking the brunt of the moves as […]
RBA unchanged – a May cut looks likely, subject to inflation data
Japan’s monetary base fell for the first time in more than three years in March, triggering some volatility in USDJPY early in the Asian session. The kneejerk reaction was to sell USDJPY as the possibility of no further easing from the Bank of Japan gained momentum and the pair slumped to an 81.55 low.
Speculative Positions
JPY net speculative position lowest since June 2007 SEB Risk appetite index (RAI) RAI roughly unchanged week on week and thus still within the risk neutral zone and contained in an upward channel.
FX Daily Strategist: Europe
Quarter-end flows impact bond markets more than FX After all the hype of some potentially dramatic end of month/quarter/Japan fiscal year-end flows, Friday went out with a whimper not a bang. The USD was mixed on the day, equities modestly firmer and bonds weaker (and much weaker into the close, to the consternation of many […]
Risk higher as Asia mulls strong headline PMI data from China
Risk appetite exploded higher at the start of Asian trading today after China announced some stellar (or should we say unbelievable!) PMI data for March yesterday. The official China PMI rose to 53.1 from 51.0 (50.8 expected) and was the fastest pace of expansion in 12 months and the fourth consecutive month above the key […]
AUD selling still featured in today’s Asian session
The AUD remained the market mover during the Asian session with steady selling in the AUDJPY cross (probably linked to JPY repatriation flows into financial year-end) sending the AUDUSD below overnight lows, but only marginally so. Profit-taking at lunchtime has since led to consolidation but we still remained below the 1.04 mark.
RBA upbeat on stability of local banking system; AUD top-heavy
The RBA’s Financial Stability Overview painted a quite upbeat picture of the local banking system and, in a similar vein to member Debelle’s speech yesterday, offered assurance that the system was well-capitalized and well-positioned to meet the requirements of the Basel III accord.
FX Ringside
Risk-on as euro outlook continues to stabilize The euro remains surprisingly strong, probably still benefiting from short-covering previous very stretched, negative positioning in the currency. This situation is likely to continue for some time yet with the Euro-zone at least temporarily stable due to Greece being no longer in focus and European banks apparently possessing […]