9 Mar 2015
Market Movers: DXY hits fresh highs, AUD and NZD worst performers – TDS
FXStreet (Barcelona) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities summarizes the market performance in the Asian trade, noting that AUD and NZD are the two worst performing currencies in the G10 FX space.
Key Quotes
“The super strong NFP number (+295k and the unemployment rate at 5.5%, the lowest since May 2008) saw the USD gain further in Asian trade, +0.13% with ACGB and NZGB bond yields backing up on the US Treasury-driven sell off.”
“Confusing holiday-impacted China trade data released over the weekend were ignored, providing little support for regional equities, all major indices down on the day. Commodities are generally weaker against the strong USD.”
“In FX, the AUD and the NZD are the two worst G10 performers in our region, as the DXY hits fresh cycle highs on the open, not seen since 2003. The NZD is down –0.4% to US$0.7330 and the AUD has broken below US$0.77 at US$0.7690, edging closer to the US$0.7650 post float average. The Euro is 0.05% weaker at US$1.0840.”
“In fixed income, NZGB yields are +7bps across the entire curve. ACGB short end yields are 6bp higher and the curve steeper on the +10bps long end sell off. US 10yrs in Asia are 1.5bps lower in yield at 2.225%, but ACGBs and NZGBs have outperformed the 13bps UST move seen on Friday.”
“Equities are down ~1% across the region. Australian stocks have underperformed, -1.3%, with Indian and Korean indices not far behind. Chinese equities are close to unchanged now, but were down as much as 1.3% in early trading."
“Commodities are generally soft in the face of USD strength. Gold is up a meagre US$3, after the pounding it got on Friday night, copper futures are down 0.2%, brent futures are weaker, -0.6% while front month iron ore futures are unchanged.”
Key Quotes
“The super strong NFP number (+295k and the unemployment rate at 5.5%, the lowest since May 2008) saw the USD gain further in Asian trade, +0.13% with ACGB and NZGB bond yields backing up on the US Treasury-driven sell off.”
“Confusing holiday-impacted China trade data released over the weekend were ignored, providing little support for regional equities, all major indices down on the day. Commodities are generally weaker against the strong USD.”
“In FX, the AUD and the NZD are the two worst G10 performers in our region, as the DXY hits fresh cycle highs on the open, not seen since 2003. The NZD is down –0.4% to US$0.7330 and the AUD has broken below US$0.77 at US$0.7690, edging closer to the US$0.7650 post float average. The Euro is 0.05% weaker at US$1.0840.”
“In fixed income, NZGB yields are +7bps across the entire curve. ACGB short end yields are 6bp higher and the curve steeper on the +10bps long end sell off. US 10yrs in Asia are 1.5bps lower in yield at 2.225%, but ACGBs and NZGBs have outperformed the 13bps UST move seen on Friday.”
“Equities are down ~1% across the region. Australian stocks have underperformed, -1.3%, with Indian and Korean indices not far behind. Chinese equities are close to unchanged now, but were down as much as 1.3% in early trading."
“Commodities are generally soft in the face of USD strength. Gold is up a meagre US$3, after the pounding it got on Friday night, copper futures are down 0.2%, brent futures are weaker, -0.6% while front month iron ore futures are unchanged.”