11 Jun 2015
Market Movers: RBNZ and BoK cut rates, AUD/NZD higher – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the key developments and the financial market performance during the Asian trading session.
Key Quotes
“A busy day in Asia with the RBNZ and BoK cutting rates by -25bps (one minority view, one majority view) while Australian employment posted another strong result. The AUDNZD is the cross du jour, staging a violent move from NZ$1.0750 yesterday to get as high as NZ$1.1070 following the “surprise” RBNZ cut. Stating the obvious, the NZD underperformed, -2.5%, while the AUD is on top at +0.1%.”
“Other G10 crosses are trading lower on average down -0.2% vs the USD. The yen is the other mover with BoJ vs Abe govt offering conflicting advice on USD strength, creating further, although at 123.2 is trading below the pre-Kuroda observation of 124.5.”
“ACGB and NZGB curves are steeper, the ACGB curve on a bear move, 10yrs +10bps to 3.15% with the physical curve above +100bps, +3bps steeper. In contrast NZGB yields fell 10bps at the short end and only 1bp at the long end, 2yrs at 3.03%, 10yrs at 3.90%.”
“Asian equities are up across the board, with Japan +1.3%, ASX +1.3%, HK +1% while China is -0.2%. Commodities are flat in Asia after a positive session in US trade overnight.”
Key Quotes
“A busy day in Asia with the RBNZ and BoK cutting rates by -25bps (one minority view, one majority view) while Australian employment posted another strong result. The AUDNZD is the cross du jour, staging a violent move from NZ$1.0750 yesterday to get as high as NZ$1.1070 following the “surprise” RBNZ cut. Stating the obvious, the NZD underperformed, -2.5%, while the AUD is on top at +0.1%.”
“Other G10 crosses are trading lower on average down -0.2% vs the USD. The yen is the other mover with BoJ vs Abe govt offering conflicting advice on USD strength, creating further, although at 123.2 is trading below the pre-Kuroda observation of 124.5.”
“ACGB and NZGB curves are steeper, the ACGB curve on a bear move, 10yrs +10bps to 3.15% with the physical curve above +100bps, +3bps steeper. In contrast NZGB yields fell 10bps at the short end and only 1bp at the long end, 2yrs at 3.03%, 10yrs at 3.90%.”
“Asian equities are up across the board, with Japan +1.3%, ASX +1.3%, HK +1% while China is -0.2%. Commodities are flat in Asia after a positive session in US trade overnight.”