Back
13 May 2015
Market Movers: USD broadly weaker in Asia, NZD strong – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the forex and fixed income market performance during the Asian trading session.
Key Quotes
“Following the death spiral in fixed income during the Asian day session yesterday, we saw accounts come back to tentatively pick up short to mid curve issues this morning but the long end continues to draw little interest. ACGB 3yrs are 4 bps lower in yield and 10yrs –5bps. In contrast the NZGB short end is unchanged but the 10yrs are out 3bps, NZ$300m of NZGB 27s to be tendered tomorrow.”
“In FX, the USD is broadly weaker in Asia, down –0.15%. The NZD has managed the best gains in our zone, the gains accelerating with the FSR removing reference to the NZD as ’unjustifiable’. This saw the AUDNZD drop from NZ$1.09 to a low of NZ$1.0770. We saw this cross head back out a few hours later to NZ$1.0840 when the press reported the RBNZ views the NZD as unsustainable, unjustifiable and would like to see the NZD lower. This came as a surprise to the market given Gov Wheeler dodged commenting on why ’unjustifiable’ was not in the FSR document when asked earlier during the press conference. The AUDNZD is back below NZ$1.08.”
“Right now, the NZD is +0.35% at US$0.7390, the NOK and DKK also up +0.35% while the AUD gave up earlier gains having hit a US$0.8010 high, but lost momentum on the release of weak Q1 wage data. The AUD, CAD and Yen are unchanged.”
“Over in equities, Chinese stocks are taking a breather, -0.2%, but the major regional indices are up +0.5%, with Indian stocks the outlier, up +1.5%.”
“Commodities are mixed. Brent is +0.5%, after the stellar +3% gain in US trade, gold is trading around US$1195, iron ore –1.5% & copper –0.5%.”
Key Quotes
“Following the death spiral in fixed income during the Asian day session yesterday, we saw accounts come back to tentatively pick up short to mid curve issues this morning but the long end continues to draw little interest. ACGB 3yrs are 4 bps lower in yield and 10yrs –5bps. In contrast the NZGB short end is unchanged but the 10yrs are out 3bps, NZ$300m of NZGB 27s to be tendered tomorrow.”
“In FX, the USD is broadly weaker in Asia, down –0.15%. The NZD has managed the best gains in our zone, the gains accelerating with the FSR removing reference to the NZD as ’unjustifiable’. This saw the AUDNZD drop from NZ$1.09 to a low of NZ$1.0770. We saw this cross head back out a few hours later to NZ$1.0840 when the press reported the RBNZ views the NZD as unsustainable, unjustifiable and would like to see the NZD lower. This came as a surprise to the market given Gov Wheeler dodged commenting on why ’unjustifiable’ was not in the FSR document when asked earlier during the press conference. The AUDNZD is back below NZ$1.08.”
“Right now, the NZD is +0.35% at US$0.7390, the NOK and DKK also up +0.35% while the AUD gave up earlier gains having hit a US$0.8010 high, but lost momentum on the release of weak Q1 wage data. The AUD, CAD and Yen are unchanged.”
“Over in equities, Chinese stocks are taking a breather, -0.2%, but the major regional indices are up +0.5%, with Indian stocks the outlier, up +1.5%.”
“Commodities are mixed. Brent is +0.5%, after the stellar +3% gain in US trade, gold is trading around US$1195, iron ore –1.5% & copper –0.5%.”