Market Movers: Greek negotiations pressure euro, AUD biggest mover in FX
12 February 2015, 07:54
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The TD Securities Team shares the market performance in the Asian trade, noting that AUD/USD was the biggest mover in the FX space post the disappointing jobs data release, while euro was seen pressurised by the inconclusive Greece discussions.
Key Quotes
“There were no US data leads overnight, while Asian markets walked into a headline “FINAL DETAILS OF GREEK DEAL WILL BE KNOWN MONDAY, CNBC REPORTS” popping EUR to 1.1352 but subsequent backtracking whereby the Eurogroup Finance Ministers could not come to a joint conclusion on Greece saw the EUR retreat to US$1.1315, trading around those levels for the remainder of our session.”
“The big mover in fx space was the AUD, down 0.85% after a weak jobs report sparking speculation of back to back RBA rate cuts. The AUD is currently at US$0.7650 and the NZD was dragged lower by 0.35%, with NZ’s own weak PMI report lending a negative tone.”
“The Yen is the only currency stronger vs the USD +0.14% at ¥120.30 but briefly broke below ¥120 earlier in the session.”
“Bond yields are lower after rising in prior sessions. UST 10yrs are 3 bps lower at 1.985% in Asia, NZGBs –3bps but ACGBs outperformed, 3yr yields dropping 8bps and the curve steepening 4bps. Today’s NZ$300m tender of the Apr 27s went well (a high yielder?) at 3.35%.”
“Equities are mostly in the green in our region. The Nikkei is at fresh multi year highs, +1.8%, China +0.8%, but Australia –0.4%.”
“Gold has made only a modest recovery after last night’s fall, up US$3 to US$1222, brent crude is +0.9% to US$55.15 while base/bulks are mostly unchanged.”
“We expect the BoE’s inflation report to be slightly hawkish, but for the Riksbank to push its policy rate into negative territory.”
Key Quotes
“There were no US data leads overnight, while Asian markets walked into a headline “FINAL DETAILS OF GREEK DEAL WILL BE KNOWN MONDAY, CNBC REPORTS” popping EUR to 1.1352 but subsequent backtracking whereby the Eurogroup Finance Ministers could not come to a joint conclusion on Greece saw the EUR retreat to US$1.1315, trading around those levels for the remainder of our session.”
“The big mover in fx space was the AUD, down 0.85% after a weak jobs report sparking speculation of back to back RBA rate cuts. The AUD is currently at US$0.7650 and the NZD was dragged lower by 0.35%, with NZ’s own weak PMI report lending a negative tone.”
“The Yen is the only currency stronger vs the USD +0.14% at ¥120.30 but briefly broke below ¥120 earlier in the session.”
“Bond yields are lower after rising in prior sessions. UST 10yrs are 3 bps lower at 1.985% in Asia, NZGBs –3bps but ACGBs outperformed, 3yr yields dropping 8bps and the curve steepening 4bps. Today’s NZ$300m tender of the Apr 27s went well (a high yielder?) at 3.35%.”
“Equities are mostly in the green in our region. The Nikkei is at fresh multi year highs, +1.8%, China +0.8%, but Australia –0.4%.”
“Gold has made only a modest recovery after last night’s fall, up US$3 to US$1222, brent crude is +0.9% to US$55.15 while base/bulks are mostly unchanged.”
“We expect the BoE’s inflation report to be slightly hawkish, but for the Riksbank to push its policy rate into negative territory.”
