6 Apr 2015
Liquidity remains thin, reaction to soft US data delayed – TDS
FXStreet (Barcelona) - Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities, summarizes the market performance during the Asian trade, noting that liquidity has been extremely thin in Asia and this holiday-shorted trading implies that reaction to the soft US data might be delayed by a day or two.
Key Quotes
“Usually such a downside miss to payrolls (+126k vs 245k) would be a clear USD-negative, but holiday-shorted trading means this “reaction” is delayed a day or two (UK and Europe out today).”
“The USD in our session was mixed, up against half its G10 peers, performing best vs the NZD (+0.15%) while the USD is down vs the other half, performing worst vs the NOK, -0.2%. The AUD is –0.1% at US$0.7625, roughly back to pre-payroll levels and ahead of tomorrow’s RBA rate decision.”
“AUDNZD traded to a fresh low of 1.0021 today, currently 1.0040, but we anticipate the cross could touch parity if the RBA cuts tomorrow (not TD’s view).”
“UST 10yrs are 1bp lower in yield, just below 1.83%, but ACGB and NZGB markets are shut.”
“Regional equity markets appear to be taking the weak payrolls print in their stride. Japan is down 0.4%, while India and Korea are +0.1%.”
“In the commodities patch, gold is trading closer to US$1220, spurred along by the negative USD, payrolls driven outcome, copper futures are +0.8%, Brent futures are firmer, +1.3% while iron ore futures trading is shut with China on holiday.”
Key Quotes
“Usually such a downside miss to payrolls (+126k vs 245k) would be a clear USD-negative, but holiday-shorted trading means this “reaction” is delayed a day or two (UK and Europe out today).”
“The USD in our session was mixed, up against half its G10 peers, performing best vs the NZD (+0.15%) while the USD is down vs the other half, performing worst vs the NOK, -0.2%. The AUD is –0.1% at US$0.7625, roughly back to pre-payroll levels and ahead of tomorrow’s RBA rate decision.”
“AUDNZD traded to a fresh low of 1.0021 today, currently 1.0040, but we anticipate the cross could touch parity if the RBA cuts tomorrow (not TD’s view).”
“UST 10yrs are 1bp lower in yield, just below 1.83%, but ACGB and NZGB markets are shut.”
“Regional equity markets appear to be taking the weak payrolls print in their stride. Japan is down 0.4%, while India and Korea are +0.1%.”
“In the commodities patch, gold is trading closer to US$1220, spurred along by the negative USD, payrolls driven outcome, copper futures are +0.8%, Brent futures are firmer, +1.3% while iron ore futures trading is shut with China on holiday.”