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11 May 2015
Market Movers: USD firm, NZD worst performer on RBNZ easing expectations – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance during the Asian trading session.
Key Quotes
“The PBoC’s decision to cut the benchmark rate over the weekend had little lasting impact on asset markets, with the traditional risk-on move noticeably absent once again.”
“The USD is firmer in Asia even after US NFP data on Friday has the market push back the timing of the 1st Fed hike to Q4 2015. The G10 pack is down on average about 0.35% vs the USD, but it is the NZD that is the worst performer, -1.35% as markets begin pricing in potential for the RBNZ to cut as early as next month (the market attaching a 40% prob according to the OIS strip).”
“Accordingly NZ bonds have outperformed , yields down 5bps, while ACGBs are close to unchanged on the day.”
“Equities are firmer, taking their lead from US price action on Friday, with Chinese equities +1.40% (coincidentally today is the 888th day since the bottom in the SHCOMP on 4th Dec, 2012).”
“Gold and brent are unchanged, copper is –0.65% and iron ore Sep futures are +1%.”
Key Quotes
“The PBoC’s decision to cut the benchmark rate over the weekend had little lasting impact on asset markets, with the traditional risk-on move noticeably absent once again.”
“The USD is firmer in Asia even after US NFP data on Friday has the market push back the timing of the 1st Fed hike to Q4 2015. The G10 pack is down on average about 0.35% vs the USD, but it is the NZD that is the worst performer, -1.35% as markets begin pricing in potential for the RBNZ to cut as early as next month (the market attaching a 40% prob according to the OIS strip).”
“Accordingly NZ bonds have outperformed , yields down 5bps, while ACGBs are close to unchanged on the day.”
“Equities are firmer, taking their lead from US price action on Friday, with Chinese equities +1.40% (coincidentally today is the 888th day since the bottom in the SHCOMP on 4th Dec, 2012).”
“Gold and brent are unchanged, copper is –0.65% and iron ore Sep futures are +1%.”