Analysts at Westpac got together and drew up and lost of key points for the key flow indicators for Australia and New Zealand.
Key Quotes:
"Japanese demand for A$ assets held up well in October as AUD/JPY stabilised around 85. We think it will have slowed as the currency more recently lifted towards 90.
Japanese demand remains very focussed on non sovereign debt.
November saw a resurgence in buying of A$ fixed income, registering the largest buy-side net delta since February/March this year.
Demand for A$ equity was not as strong as we expected according to the Q3 BOP data. We suspect this may be revised higher in coming quarters. The list of pending M&A and future deals suggests strong demand will continue into 2016.
Speculative short A$ positions was cut back late last month as the AUD proved resilient. Our own flows highlight a fierce uplift in real money interest.
Japanese demand for NZ$ debt has settled back in recent months, however US investors have swung from net sellers to net buyers of NZ$ bonds.
November was a weak month for NZ$ EMTN issuance. However, our own NZGB investor clients have shown signs of more resilient demand.
Leveraged traders rebuilt short NZD short positions in November."
Key Quotes:
"Japanese demand for A$ assets held up well in October as AUD/JPY stabilised around 85. We think it will have slowed as the currency more recently lifted towards 90.
Japanese demand remains very focussed on non sovereign debt.
November saw a resurgence in buying of A$ fixed income, registering the largest buy-side net delta since February/March this year.
Demand for A$ equity was not as strong as we expected according to the Q3 BOP data. We suspect this may be revised higher in coming quarters. The list of pending M&A and future deals suggests strong demand will continue into 2016.
Speculative short A$ positions was cut back late last month as the AUD proved resilient. Our own flows highlight a fierce uplift in real money interest.
Japanese demand for NZ$ debt has settled back in recent months, however US investors have swung from net sellers to net buyers of NZ$ bonds.
November was a weak month for NZ$ EMTN issuance. However, our own NZGB investor clients have shown signs of more resilient demand.
Leveraged traders rebuilt short NZD short positions in November."
