12 May 2015
Market Movers: Antipodeans outperform in the FX space – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance during the Asian trading session.
Key Quotes
“The back up in Bund and UST yields overnight continues to weigh on regional bond markets with clients showing little interest to stand in the way and buy. ACGBs have given back all of the SoMP gains now, ACGB 3yrs +8bps and 10yrs +15% to 3%. NZGBs are also higher in yield but have outperformed vs Aus and US, NZ 2yrs +2.5bps and 10yrs +9.5bps.”
“Driving relative NZ outperformance is RBNZ rate cut speculation building, a June 25bps cut to 3.25% being given a 45% chance now from 40% yest. That talk though has not stopped the NZD performing today, +0.45% today to US$0.7365, the 2nd best performer in the G10, behind the AUD +0.6% to US$0.7935.”
“The USD is generally weaker in Asia, -0.1% but the GBP is close to unchanged after punching to 5mth highs overnight while the ¥ is down 0.1%, hitting ¥120.25 intraday.”
“There is no clear trend evident in equities, Japan –0.35%, China +0.4%, Hang Seng –0.35%. Australia is +1% but India is down 1.7%. There is very little change in the commodity complex.”
Key Quotes
“The back up in Bund and UST yields overnight continues to weigh on regional bond markets with clients showing little interest to stand in the way and buy. ACGBs have given back all of the SoMP gains now, ACGB 3yrs +8bps and 10yrs +15% to 3%. NZGBs are also higher in yield but have outperformed vs Aus and US, NZ 2yrs +2.5bps and 10yrs +9.5bps.”
“Driving relative NZ outperformance is RBNZ rate cut speculation building, a June 25bps cut to 3.25% being given a 45% chance now from 40% yest. That talk though has not stopped the NZD performing today, +0.45% today to US$0.7365, the 2nd best performer in the G10, behind the AUD +0.6% to US$0.7935.”
“The USD is generally weaker in Asia, -0.1% but the GBP is close to unchanged after punching to 5mth highs overnight while the ¥ is down 0.1%, hitting ¥120.25 intraday.”
“There is no clear trend evident in equities, Japan –0.35%, China +0.4%, Hang Seng –0.35%. Australia is +1% but India is down 1.7%. There is very little change in the commodity complex.”