29 Jan 2015
AUD, NZD, SGD all weakened - ANZ
FXStreet (Bali) - ANZ runs an overview of Wednesday's key events in FX, noting that the AUD, NZD and SGD all weakened following articles in the media, a surprise easing from the MAS and a genuinely neutral RBNZ.
Key Quotes
"Uncertainty over the forthcoming Greek debt negotiations continued to drive market moves. Greek 10-year sovereign bond yields ballooned again, dragging yields higher in the euro area periphery and the rout continued in the Greek stock market. Otherwise, most markets traded in fairly tight ranges ahead of the FOMC statement (released at 6am AEDT)."
"The exception was the AUD/USD, which fell following an article by RBA watcher Terry McCrann, which postulated that the RBA “will almost certainly” lower the cash rate next week (and revise its growth outlook lower in next Friday’s Statement)."
"The FOMC statement was little changed but on the whole marginally more dovish in our view. This saw 10-year US Treasury yields fall 5bps after the statement. US stocks also sold off following the statement to finish modestly lower, while the reaction from the USD was comparatively muted. Commodity markets were mixed."
"Oil prices weakened after the US Energy Information Administration reported that crude inventories increased to their highest level for at least 30 years. Gold eased modestly."
Key Quotes
"Uncertainty over the forthcoming Greek debt negotiations continued to drive market moves. Greek 10-year sovereign bond yields ballooned again, dragging yields higher in the euro area periphery and the rout continued in the Greek stock market. Otherwise, most markets traded in fairly tight ranges ahead of the FOMC statement (released at 6am AEDT)."
"The exception was the AUD/USD, which fell following an article by RBA watcher Terry McCrann, which postulated that the RBA “will almost certainly” lower the cash rate next week (and revise its growth outlook lower in next Friday’s Statement)."
"The FOMC statement was little changed but on the whole marginally more dovish in our view. This saw 10-year US Treasury yields fall 5bps after the statement. US stocks also sold off following the statement to finish modestly lower, while the reaction from the USD was comparatively muted. Commodity markets were mixed."
"Oil prices weakened after the US Energy Information Administration reported that crude inventories increased to their highest level for at least 30 years. Gold eased modestly."