28 Apr 2015
Market Movers: AUD outperforms on RBA Steven’s speech – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance during the Asian trading session.
Key Quotes
“RBA Gov Stevens’s speech to the AFR Banking & Wealth Summit kicked off proceedings in Asia today. Although the title of his speech was not disclosed beforehand, market participants were anticipating commentary to hold some direct relevance ahead of next week’s RBA meeting.”
“The Gov dashed those hopes very early into his speech steering clear of any monetary policy commentary, but surprisingly in Q&A noted ’Unemployment rates look quite healthy now’ driving AUD outperformance, +0.2% to US$0.7870 (DXY unchanged on the day) and push ACGB yields higher by 6-7bps across the curve as the RBA injects further doubt whether it will cut rates next week or below 2% in the following months.”
“With USTs and NZGB yields unchanged, ACGBs have underperformed, the AU-US 10yr spread is near 3 month wides at 64bps (was 40bps two weeks ago) and the NZ-AU 10yr spread has narrowed 12bps in the last week.”
“Regional equities are generally weaker, but with today’s falls fairly shallow, at most 0.5% for the major indices, these are just pullbacks off multi year highs. Indian and Japanese stock markets are the outliers, +0.5%.”
“Commodities are flat to softer, gold off US$2 to US$1200, copper futures –0.7% and Brent futures –1.2%. May iron ore futures are up +2% while Sep is unchanged.”
Key Quotes
“RBA Gov Stevens’s speech to the AFR Banking & Wealth Summit kicked off proceedings in Asia today. Although the title of his speech was not disclosed beforehand, market participants were anticipating commentary to hold some direct relevance ahead of next week’s RBA meeting.”
“The Gov dashed those hopes very early into his speech steering clear of any monetary policy commentary, but surprisingly in Q&A noted ’Unemployment rates look quite healthy now’ driving AUD outperformance, +0.2% to US$0.7870 (DXY unchanged on the day) and push ACGB yields higher by 6-7bps across the curve as the RBA injects further doubt whether it will cut rates next week or below 2% in the following months.”
“With USTs and NZGB yields unchanged, ACGBs have underperformed, the AU-US 10yr spread is near 3 month wides at 64bps (was 40bps two weeks ago) and the NZ-AU 10yr spread has narrowed 12bps in the last week.”
“Regional equities are generally weaker, but with today’s falls fairly shallow, at most 0.5% for the major indices, these are just pullbacks off multi year highs. Indian and Japanese stock markets are the outliers, +0.5%.”
“Commodities are flat to softer, gold off US$2 to US$1200, copper futures –0.7% and Brent futures –1.2%. May iron ore futures are up +2% while Sep is unchanged.”