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2 Apr 2015
RBA rate cut expectations high, AUD the only loser vs USD – TDS
FXStreet (Barcelona) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities, shares the key developments and summarizes the market performance during the Asian trading session.
Key Quotes
“ACGBs have lagged the overnight move lower in UST yields, 3yr yields –4bps to 1.68% and 10yr yields –2.5bps to 2.31% despite speculation for the RBA to cut next week building. That said there is more interest in the front end with April IBs placing a 78% probability for the RBA to cut rates to 2% on Tuesday (from low 70s yest) with airplay given to the drop in iron ore prices continuing to nudge the odds higher today.”
“As a result, the AUD is the only G10 unit weaker vs the USD in Asia, -0.15% at US$0.7590, while most of the G10 pack is up +0.10%, with the NZD the best performer, +0.25% (AUDNZD at NZ$1.1060, did get as low as NZ$1.0148).”
“It is a sea of green in regional equities, Japanese stocks up +2%, Hang Seng +0.5%, Aust +0.65% and China is +0.3%.”
“Commodities are unchanged to down today, gold is near opening levels at US$1203, copper is unch, front month Brent futures are down 0.7% but May iron ore futures are down –3.75%.”
Key Quotes
“ACGBs have lagged the overnight move lower in UST yields, 3yr yields –4bps to 1.68% and 10yr yields –2.5bps to 2.31% despite speculation for the RBA to cut next week building. That said there is more interest in the front end with April IBs placing a 78% probability for the RBA to cut rates to 2% on Tuesday (from low 70s yest) with airplay given to the drop in iron ore prices continuing to nudge the odds higher today.”
“As a result, the AUD is the only G10 unit weaker vs the USD in Asia, -0.15% at US$0.7590, while most of the G10 pack is up +0.10%, with the NZD the best performer, +0.25% (AUDNZD at NZ$1.1060, did get as low as NZ$1.0148).”
“It is a sea of green in regional equities, Japanese stocks up +2%, Hang Seng +0.5%, Aust +0.65% and China is +0.3%.”
“Commodities are unchanged to down today, gold is near opening levels at US$1203, copper is unch, front month Brent futures are down 0.7% but May iron ore futures are down –3.75%.”