25 Feb 2015
Market Movers: USD loses ground, Yields push lower in the Asian trade - TDS
FXStreet (Barcelona) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities, summarizes the market performance in the Asian trade, sharing that USD continued to lose ground, while ACGBs and NZGBs yields pushed lower.
Key Quotes
“Fed Chair Yellen’s more dovish testimony overnight saw the USD continue to lose ground in Asia, but helped to push yields lower across ACGBs and NZGBs.”
“China resumed trading after a week long closure for Chinese New Year yet the better Flash PMI outcome for Feb still saw Chinese equities in the red.”
“That said, the AUD and NZD both responded to the better PMI read with the AUD also holding gains on better than expected construction data. The AUD is +0.7% at US$0.7885 and the NZD is +0.8% at US$0.7550. Otherwise the ¥ and the CAD are +0.25% with the European currencies just in positive territory.”
“US 10yrs are about 0.5bps higher in yield following the 10bps + rally overnight at 1.9875%, with ACGB 10yrs –3.5bps and NZGB 10yrs –2 bps.”
“Equity markets are up in the region when excluding China, but the gains are moderate, India +0.6%, Australia +0.3%, Korea +0.7%, Hang Seng +0.35%. The Nikkei is unchanged.”
“Over in commodities, iron ore futures are off 2.2%, copper futures are 0.3% weaker, brent futures +0.35%, while gold has managed a decent recovery from late NY trading to be close to US$1210.”
Key Quotes
“Fed Chair Yellen’s more dovish testimony overnight saw the USD continue to lose ground in Asia, but helped to push yields lower across ACGBs and NZGBs.”
“China resumed trading after a week long closure for Chinese New Year yet the better Flash PMI outcome for Feb still saw Chinese equities in the red.”
“That said, the AUD and NZD both responded to the better PMI read with the AUD also holding gains on better than expected construction data. The AUD is +0.7% at US$0.7885 and the NZD is +0.8% at US$0.7550. Otherwise the ¥ and the CAD are +0.25% with the European currencies just in positive territory.”
“US 10yrs are about 0.5bps higher in yield following the 10bps + rally overnight at 1.9875%, with ACGB 10yrs –3.5bps and NZGB 10yrs –2 bps.”
“Equity markets are up in the region when excluding China, but the gains are moderate, India +0.6%, Australia +0.3%, Korea +0.7%, Hang Seng +0.35%. The Nikkei is unchanged.”
“Over in commodities, iron ore futures are off 2.2%, copper futures are 0.3% weaker, brent futures +0.35%, while gold has managed a decent recovery from late NY trading to be close to US$1210.”