3 May 2016
G10 action overnight: Aussie top performer - Westpac
Analysts at Westpac noted the action in the G10's overnight as we head towards a busy looking session today with the RBA coming up.
Key Quotes:
"AUD/USD outperformed on the day, rising from just above 0.7600 late Asia to a high of 0.7672 in New York. NZD also rose, from 0.6990 to around 0.7020. AUD/NZD thus rose about half a cent to 1.0920. EUR/USD rose from 1.1460 to 1.1536 – the highest since Aug 2015, with some of the gains coming after the US manufacturing data."
"USD/JPY consolidated just above its 18-month low of 106.14 which printed yesterday. Bank of Japan governor Kuroda said a strong yen can have an unwelcome effect on Japan’s economy. But of course the latest yen surge was sparked by the BoJ’s decision to hold policy steady last week, so any intervention near term would be very poorly received at the G7."
Key Quotes:
"AUD/USD outperformed on the day, rising from just above 0.7600 late Asia to a high of 0.7672 in New York. NZD also rose, from 0.6990 to around 0.7020. AUD/NZD thus rose about half a cent to 1.0920. EUR/USD rose from 1.1460 to 1.1536 – the highest since Aug 2015, with some of the gains coming after the US manufacturing data."
"USD/JPY consolidated just above its 18-month low of 106.14 which printed yesterday. Bank of Japan governor Kuroda said a strong yen can have an unwelcome effect on Japan’s economy. But of course the latest yen surge was sparked by the BoJ’s decision to hold policy steady last week, so any intervention near term would be very poorly received at the G7."