5 Feb 2014
Flash: Big movers - Rabobank
FXStreet (Guatemala) - Strategists at Rabobank said 10-year Aussies were up 7bp yesterday to 4.07% following the RBA decision to leave rates on hold at 2.50%, as universally expected, but to also shift to a clear neutral bias.
Key Quotes:
"Given the recent data ‘shockers’ of weak December labour force and strong Q4 CPI, that outcome was not a surprise; however, recent market volatility, as well as the risks of a slowdown in China ahead – if they continue to crystallize, still suggest an eventual shift back towards an easing bias ahead".
"JPY continued to firm in the early session yesterday, hitting a high of under 100.80 before reversing back to 101.75, which may help the Nikkei today".
"Meanwhile, EUR range-traded around the 1.35 level, GBP slipped below 1.63 before recovering some ground, and the AUD firmed significantly on the RBA decision (and ironically despite their statement arguing that the Bank was happy with a weaker AUD), pushing straight up from 87.50 to eventually hit resistance at 89.40".
Key Quotes:
"Given the recent data ‘shockers’ of weak December labour force and strong Q4 CPI, that outcome was not a surprise; however, recent market volatility, as well as the risks of a slowdown in China ahead – if they continue to crystallize, still suggest an eventual shift back towards an easing bias ahead".
"JPY continued to firm in the early session yesterday, hitting a high of under 100.80 before reversing back to 101.75, which may help the Nikkei today".
"Meanwhile, EUR range-traded around the 1.35 level, GBP slipped below 1.63 before recovering some ground, and the AUD firmed significantly on the RBA decision (and ironically despite their statement arguing that the Bank was happy with a weaker AUD), pushing straight up from 87.50 to eventually hit resistance at 89.40".