1 Jul 2013
Flash: AUD/USD hits new low in quarter-end – NAB
FXstreet.com (New York) - The Month/quarter end portfolio rebalancing and hedge-related flows dominated market price action on Friday, one result of which was the AUD/USD making a new cycle low of 0.9114, notes the NAB Research Team.
Much of the price action occurred an hour or so either side of the 4pm London fixings. The AUD was the worse G10 performer by far (-1.5%) followed by the JPY where the USD/JPY rallied 0.8% on the day (high of 99.45) and then NZD.
Moreover, “Fundamental/news support for a stronger dollar (DXY added 0.3%) came from latest Fed speak, where Board member Jeremy Stein and (FOMC non-voting hawk) Jeffrey Lacker both gave succor to the notion of QE tapering commencing in September.” the team adds. This has the effect of pushing Treasury yields back (slightly) higher (10s ended the NY session +1.5bps @ 2.486%). US stocks seeped lower, S&P closing -0.43%, the Dow -0.76% while NASDAQ finished marginally higher (+0.04%).
Much of the price action occurred an hour or so either side of the 4pm London fixings. The AUD was the worse G10 performer by far (-1.5%) followed by the JPY where the USD/JPY rallied 0.8% on the day (high of 99.45) and then NZD.
Moreover, “Fundamental/news support for a stronger dollar (DXY added 0.3%) came from latest Fed speak, where Board member Jeremy Stein and (FOMC non-voting hawk) Jeffrey Lacker both gave succor to the notion of QE tapering commencing in September.” the team adds. This has the effect of pushing Treasury yields back (slightly) higher (10s ended the NY session +1.5bps @ 2.486%). US stocks seeped lower, S&P closing -0.43%, the Dow -0.76% while NASDAQ finished marginally higher (+0.04%).