Oil sprints higher on M.E. situation
It has been a quiet start to a busy week, with US equities flat, US Treasury yields slightly lower and modest changes in major currencies, notes BNZ Markets this morning. The NZD has outperformed, rising 0.3% to 0.6020 and gaining on all the key crosses. “In contrast to last Monday’s panic-stricken market conditions, the open this week has been pretty dull,” says Jason Wong, senior markets strategist. “The US S&P500 has been oscillating between small gains and losses and sits flat as we go...
NZ dollar up against the yen
After the wild ride in markets that began just over a week ago, some sense of normality has returned, noted BNZ Markets senior market strategist Jason Wong. Getting some attention in afternoon trading yesterday was a speech by Bank of Japan deputy Governor Uchida, the first public BoJ comments since last week’s rate hike. Wong notes that trhese comments were interpreted as dovish by the market, where he said that “the bank will not raise its policy interest rate when financial and capital...
Yen the standout on defensive market
The yen has continued to be the standout performer in FX markets with defensive currencies including the Swiss franc outperforming since the start of the week, noyes BNZ <Markjets this morning. “Having opened near 146, USD/JPY traded below 142 but has since recovered in line with the stabilisation in risk sentiment,” said Stuart Ritson, senior fixed interest strategist “Despite the massive volatility across asset markets and large intra-day FX moves, G10 currencies are less than 0.5% away...
US dollar weakens on Fed softer tone
Markets have had a plethora of economic data and risk events to digest in the past 24 hours headlined by the US Federal Reserve’s FOMC decision. The US Federal Reserve left rates on hold, as was unanimously expected, but signalled it is getting closer to lowering policy rates, comments Stuart Ritson, senior fixed interest strategist at BNZ Markets. Global bond yields are lower outside of Japan where the central bank raised policy rates by more than expected. The US dollar is broadly weaker led...
Japanese yen on move higher
31.7.24 The Japanese yen strengthened after a media report that the Bank of Japan will consider a 15bps hike at today’s meeting, notes BNZ Markets this morning. The NZD has outperformed alongside the yen, seeing it return to 0.59, add Jason Wong, senior markets strategist. US economic data were slightly better than expected, with job openings falling only 46k to 8184k in June. The quits rate was steady at 2.1 from a downwardly revised May. Both indicators have been trending down, signalling a...
Kiwi dollar probing 3-month low
Newsflow has been light and market movements have been well contained at the start of a busy week, notes BNZ Markets. US equities are flat, global rates are down slightly and the US Dollsr is slightly stronger, with the NZ dollar probing fresh multi-month lows below 0.5860, says Jason Wong, senior markets strategist. “In the currency market, the USD is broadly stronger, although gains have been small. “The NZD and AUD continue to struggle against the backdrop of lower commodity prices. The NZD...
Yen remains the front-runner
25.7.24 The yen continues to outperform, while the NZ dollar recovered slightly overnight after falling further through the NZ trading session, says BNZ Markets this morning. In currency markets, JPY continues its outperforming run as short positions are unwound. USD/JPY is trading just at 154, having fallen to as low as 153.11 overnight, while NZD/JPY continues to tumble, now down to 91.3, down 3½% this week so far and down nearly 8% from its high just a couple of weeks ago. Both the NZD and...
Lower commodity prices drag NZD
US equities are flat and US Treasury yields are slightly lower, while lower commodity prices continue to drag down the NZD and AUD, notes BNZ Markets this morning. While the yen remains flavour of the week. The NZD is probing the 0.5950 level, says Jason Wong, senior market strategist. On the US political scene, VP Harris looks to have the numbers to secure the Democratic nomination for the Presidential election, with her selection now seen as a foregone conclusion. Her billing has attracted a...
Commodities tug Kiwi lower
23.7.24 Weaker commodity prices have dragged down the AUD and NZD, notes BNZ Markets this morning. Jason Wong, senior markets strategist comments that there were notable underperformances by both against a backdrop of only small moves in the other key majors. “Relative to last week’s close, the AUD is down 0.6% to 0.6640 while the NZD is down 0.5% to 0.5980, with NZD/AUD up slightly to 0.90. Yesterday we noted the poor technicals for the NZD and the break of 0.60 brings the April low near...
Reduced activity due to IT outage
22.7.,24 Financial markets ended last week on a soft note, with weaker global equity markets, higher global rates and lower commodity prices notes NZ Markets this morning. “Volumes were light, as trading activity was restricted by the global IT outage that affected Microsoft Windows systems,” says Jason Wong, senior markets strategist. “Against a backdrop of weaker risk appetite, the USD was broadly stronger, and the NZD closed the week at a two-month low around 0.6010. President Biden said he...
