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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
The AUD remains the best performer within the G10 space, the currency last near 0.6600, +0.40% for the session. This is above Thursday highs. The currency has shrugged off weaker than expected housing market data (home loans -2.9% versus +2.0% expected), with focus on the upcoming RBA meeting next week and the RBA terminal rate.
- A number of forecasters have raised their terminal rate projections and see risks of a June hike. Note OIS pricing has moved higher this morning, from 40% priced in for a 25bps move, closer to 60% at the time of writing.
- The minimum wage/award wage price hike of 5.75% is also likely adding to such pressures at the margin.
- The AU-US 2yr government bond spread is trend higher as well, see the chart below.
- Better HK/China equity sentiment in early trade is also likely helping. Iron ore and copper are down slightly though.
Fig 1: AUD/USD Versus AU-US 2yr Government Bond Yield Spread
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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