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31 Mar 2015
USD continues to advance, Risk sentiment in equity markets firm – TDS
FXStreet (Barcelona) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities, summarizes the market performance during the Asian trade, and shares the key developments in Australia and China.
Key Quotes
“The USD continues to advance in Asia, adding to the overnight gains despite mixed US data. There were no major regional data releases to drive the moves in Asia, if anything Antipodean outcomes were stronger, so month/quarter end flows are likely responsible.”
“Speculation that the RBA will cut next week by 25bps is building, April IBs priced 75% for such an outcome with bill and 3yr futures touching record highs (+3 ticks) while 10yr futures are not far behind.”
“Given these developments, the AUD is holding up well, -0.3% (US$0.7635), middle of the G10 pack, bookended by the SEK –0.45% and the Yen –0.1%. The NZD is also down 0.3% at US$0.7480 (although a fresh low of AUDNZD 1.0157 reached overnight).”
“Risk sentiment amongst equity investors remains firm. The only stocks down in today’s session so far are in Japan, the Nikkei down –0.25%, a modest decline for financial year end, while Chinese stocks are +0.1% to 7yr highs, Chinese names in HK are driving gains in the Hang Seng and HSCEI (following the easing in property restrictions announced late yesterday) with Australian stocks +0.8% and India +0.25%.”
“Commodities are generally softer on US strength, gold –0.25%, brent futures –0.8%, copper futures –0.35% and iron ore futures in China are down close to 2.5%.”
Key Quotes
“The USD continues to advance in Asia, adding to the overnight gains despite mixed US data. There were no major regional data releases to drive the moves in Asia, if anything Antipodean outcomes were stronger, so month/quarter end flows are likely responsible.”
“Speculation that the RBA will cut next week by 25bps is building, April IBs priced 75% for such an outcome with bill and 3yr futures touching record highs (+3 ticks) while 10yr futures are not far behind.”
“Given these developments, the AUD is holding up well, -0.3% (US$0.7635), middle of the G10 pack, bookended by the SEK –0.45% and the Yen –0.1%. The NZD is also down 0.3% at US$0.7480 (although a fresh low of AUDNZD 1.0157 reached overnight).”
“Risk sentiment amongst equity investors remains firm. The only stocks down in today’s session so far are in Japan, the Nikkei down –0.25%, a modest decline for financial year end, while Chinese stocks are +0.1% to 7yr highs, Chinese names in HK are driving gains in the Hang Seng and HSCEI (following the easing in property restrictions announced late yesterday) with Australian stocks +0.8% and India +0.25%.”
“Commodities are generally softer on US strength, gold –0.25%, brent futures –0.8%, copper futures –0.35% and iron ore futures in China are down close to 2.5%.”