9 Apr 2015
Market Movers: USD running out of steam, AUD best performer – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the Forex, Fixed Income, Equities and Commodity market performance during the Asian trade.
Key Quotes
“The USD firmed in overnight trade as the FOMC minutes released from the March 17-18 meeting revealed an emerging consensus for a 2015 lift off in rates. Timing for lift-off though was not unanimous and while the tone of the March minutes was broadly consistent with the dovish tone of the statement and subsequent Yellen press conference that day, a June hike cannot be entirely ruled out.”
“The DXY extended the gains on the open in Asia to see it up 1% from pre US open yesterday, but has run out of steam and directionless so far.”
“The AUD continues to be the best performer +0.1% (US$0.7690), the £ +0.05% (US$1.4870), the NZD unchanged (US$0.7550) while the remaining G10 currencies are down 0.1% vs the USD.”
“Fixed income is also side-lined, although ACGB 10yrs +1.5bps.”
“Equity markets are firmer, the standout being HK stocks, the Hang Seng up as much as 8.3% intraday as cross border buying from China into HK hits the daily allowable quota for the first time. Some of the HK gains have been trimmed, but still a respectable or questionable 3.75%. The HK buying has seen buying in China ease, and the Shanghai Composite is down 1.2%, and other regional indices are +/- 0.3% from yesterday’s closes.”
“In the commodities patch, gold is back below US$1200oz, copper down smalls, -0.15%, iron ore futures –2%, retesting recent lows, and Brent crude is up nearly 1% following the 5% decline in overnight trade.”
Key Quotes
“The USD firmed in overnight trade as the FOMC minutes released from the March 17-18 meeting revealed an emerging consensus for a 2015 lift off in rates. Timing for lift-off though was not unanimous and while the tone of the March minutes was broadly consistent with the dovish tone of the statement and subsequent Yellen press conference that day, a June hike cannot be entirely ruled out.”
“The DXY extended the gains on the open in Asia to see it up 1% from pre US open yesterday, but has run out of steam and directionless so far.”
“The AUD continues to be the best performer +0.1% (US$0.7690), the £ +0.05% (US$1.4870), the NZD unchanged (US$0.7550) while the remaining G10 currencies are down 0.1% vs the USD.”
“Fixed income is also side-lined, although ACGB 10yrs +1.5bps.”
“Equity markets are firmer, the standout being HK stocks, the Hang Seng up as much as 8.3% intraday as cross border buying from China into HK hits the daily allowable quota for the first time. Some of the HK gains have been trimmed, but still a respectable or questionable 3.75%. The HK buying has seen buying in China ease, and the Shanghai Composite is down 1.2%, and other regional indices are +/- 0.3% from yesterday’s closes.”
“In the commodities patch, gold is back below US$1200oz, copper down smalls, -0.15%, iron ore futures –2%, retesting recent lows, and Brent crude is up nearly 1% following the 5% decline in overnight trade.”