1 Jul 2015
Market Movers: NZD outperforms on short covering – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the financial market performance and key developments during the Asian trading session.
Key Quotes
“With the month end shackles off and no new Greek news out in Asia, ranges across FX and rates markets have been very narrow. UST and ACGB 10yrs are unchanged today. In Aus the market attempted to cheapen the ACGB 04/25 into today’s A$900m tender, but with the tender having gone off better than expected, the long end has outperformed today by 3bps vs the short end, keeping the curve capped to 100.”
“Not much to note in FX, with very narrow ranges on the crosses. The NZD is the outperformer today on covering of shorts against long AUD positions when the AUDNZD got within a whisker of 1.14. Also Fonterra dairy auction is today at noon GMT. The CAD is mildly weaker, breaking above 1.25 in our time zone, which it failed to do in US overnight trade following the 4th successive negative CAD GDP print as the market begins to speculate the BoC will need to cut again.”
“Regional equity markets are in the green, and while China is down today, -0.5%, there has been substantial less volatility. Talk of another potential reverse repo has likely been supportive.”
Key Quotes
“With the month end shackles off and no new Greek news out in Asia, ranges across FX and rates markets have been very narrow. UST and ACGB 10yrs are unchanged today. In Aus the market attempted to cheapen the ACGB 04/25 into today’s A$900m tender, but with the tender having gone off better than expected, the long end has outperformed today by 3bps vs the short end, keeping the curve capped to 100.”
“Not much to note in FX, with very narrow ranges on the crosses. The NZD is the outperformer today on covering of shorts against long AUD positions when the AUDNZD got within a whisker of 1.14. Also Fonterra dairy auction is today at noon GMT. The CAD is mildly weaker, breaking above 1.25 in our time zone, which it failed to do in US overnight trade following the 4th successive negative CAD GDP print as the market begins to speculate the BoC will need to cut again.”
“Regional equity markets are in the green, and while China is down today, -0.5%, there has been substantial less volatility. Talk of another potential reverse repo has likely been supportive.”