NZ and Aussie dollars out-perform
The US dollar is broadly weaker, with the NZD and AUD outperforming against a backdrop of rising commodity prices, notes BNZ Markets this morning. The NZD is trading at 0.6045, with NZD/AUD falling to a 9-month low around 0.9130. Risk appetite is higher ahead of the key US employment report tonight, says Jason Wong, senior markets strategist. Equity markets are stronger, with the S&P500 up 0.7% and Treasury yields show little net movement. US initial jobless claims increased 9k last week...
US dollar takes a tumble
In currency markets, the US dollar fell sharply on markets overnight, notes BNZ Markets this morning. “Gold prices extended to fresh record highs, above US$2290 per troy ounce, having gained more than 15% since mid-February,” says Stuart Ritson, senior fixed interest strategist. Federal Reserve chair Powell’s speech on the economy didn’t provide additional information on the outlook for monetary policy. He reiterated the central bank remains data-dependent, and that the market should...
US yields rise with oil price push
3.4.21 Global rates are higher, with the US 10-year Treasury yield reaching a fresh high for the year of 4.40%, not helped by oil prices rising to fresh year-to-date highs, notes BNZ Markets this morning. Equity investors are showing further signs of fatigue, with the S&P500 close to 1%. Currency moves have been modest but, despite weaker risk appetite, the USD is broadly weaker and the NZD is up slightly overnight to 0.5965, says Jason Wong, senior market strategist. In overnight trading,...
Support for USD, yen outperforms
2.4.24 Stronger than expected US ISM manufacturing data contributed to sharply higher treasury yields, which supported the dollar, and saw US equities start the new quarter on a soft note, comments BNZ Markets this morning The S&P was down 0.4% in early afternoon trade. Gold prices retreated from record highs near US$2265 per ounce. China equities made strong gains with the CSI 300 Index up more than 1.5%, supported by a rebound in manufacturing activity. The manufacturing PMI rose to the...
Yen has a see-saw session
The yen fell overnight to its lowest level against the US Dollar since 1990 in Asian trade with interest rate differentials continuing to weigh, says BNZ Markets. USD/JPY reached highs just below 152, which prompted a round of verbal intervention by Japanese policymakers and raised the probability of actual intervention by Japanese authorities, for the first time since 2022, said senior fixed interest strategist Stuart Ritson. Finance Minister Suzuki said ‘we will take bold action against...
Currency moves on the mild side
Market price action has been limited by a lack of newsflow, says BNZ Markets this morning. Currency movements has been remarkably well contained, with the NZD steady just over the 0.60 mark. Global equity markets show small gains while global rates also show only small movements. “It has been another uneventful trading session with no catalysts to significantly impact the market,” says Jason Wong, senior markets strategist. “US data releases were mixed, with conflicting evidence on the state...
Kiwi dollar hovers around US$0.60
The NZ dollar spent Monday hovering around 0.60, some support gleaned from the Peoples Bank of China supporting the yuan after its surprising neglect on Friday, notes BNZ Markets. “It is a quiet week ahead on the calendar ahead of Easter, with most interest in the US PCE deflators released on Friday, but even so, the CPI and PPI figures that feed into that release should reduce the scope for any major surprise,” said Jason Wong, senior markets strategist. “Our main interest in markets at the...
NZ dollar drops vs greenback
In the absence of first tier economic data, US treasuries yields declined, and the US dollar advanced, notes BNZ Markets this morning. Global equity markets were mixed with the S&P ending little changed on the day but 2.3% higher over the course of last week, which was the largest advance in 3 months, says Stuart Ritson, senior interest rate strategist. The Chinese yuan reached the lowest level against the US dollar in 4 months weighing on Australasian currencies. The yuan fell sharply...
Surprise Swiss central bank rate cut
Last night a surprise rate cut by the Swiss National Bank got the market’s attention but spillover to the key markets has been limited, says BNZ Markets. European yields have pushed lower against little change in US Treasury yields. USD weakness after the Fed’s policy update yesterday has completely reversed, notes Jason Wong, senior markets strategist. After a brief look above 0.61, the NZ dollar is trading down to 0.6045. NZD/AUD has fallen below 0.92. We have previously written about...
US Fed sticks on course
21.3.23 Market reaction to the Fed’s latest policy update has been well contained so far, with some relief that the Fed still projects three rate cuts this year, albeit sees less scope for lower rates further out, says Jason Wong , senior market strategist at BNZ Markets. The US Treasuries curve is steeper on the day, driven by lower rates at the short end. The NZD hit a fresh low for the year of 0.6025 last night but is closer to 0.6070 as we go to print. This morning the US FOMC published...
