18 Jun 2015
Market Movers: DXY continues to lose ground, NZD down after weak Q1 GDP – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the key developments and the FX, Fixed Income and Equity market performance during the Asian trading session.
Key Quotes
“The DXY continues to lose ground in Asia after the market’s dovish reaction to the Fed meeting. The DXY is down 0.2% largely on the back of +0.25% gains for both the EUR and Yen. The real casualty is the NZD, dropping to a low of US$0.6881 after the weak Q1 GDP print, now down 1.3%, while the AUD is 0.4% weaker.”
“In fixed income, the ACGB’s have surprisingly outperformed despite no data and the market’s dovish take of the Fed. ACGB 3yrs –10bps, 10yrs –13bps, with NZGBs trailing, 2yrs –6bps, 10yrs –10bps and US 10yrs another 5bps lower in Asia.”
“Regional equities are generally weaker, Japan –0.6%, China –0.2% but Australia is down –1.5% (on triggers), perhaps this is why ACGBs have outperformed.”
“Commodities are generally firmer, copper +1.2%, but brent is lower –0.3%. Gold is just under US$1190.”
Key Quotes
“The DXY continues to lose ground in Asia after the market’s dovish reaction to the Fed meeting. The DXY is down 0.2% largely on the back of +0.25% gains for both the EUR and Yen. The real casualty is the NZD, dropping to a low of US$0.6881 after the weak Q1 GDP print, now down 1.3%, while the AUD is 0.4% weaker.”
“In fixed income, the ACGB’s have surprisingly outperformed despite no data and the market’s dovish take of the Fed. ACGB 3yrs –10bps, 10yrs –13bps, with NZGBs trailing, 2yrs –6bps, 10yrs –10bps and US 10yrs another 5bps lower in Asia.”
“Regional equities are generally weaker, Japan –0.6%, China –0.2% but Australia is down –1.5% (on triggers), perhaps this is why ACGBs have outperformed.”
“Commodities are generally firmer, copper +1.2%, but brent is lower –0.3%. Gold is just under US$1190.”