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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
AUD has continued to lose ground, weighed down by lower yields and softer equity market sentiment.
- AUD/USD is now off 0.40% from the NY close and testing back below the 0.7000 level, with the Aussie being the weakest performer in the G10 FX space today.
- Yields have weighed following the softer than expected wages data. Yield momentum across various tenors has rolled over, see the chart below.
- Expectations for the June RBA meeting have been tempered by a number of sell-side analysts, which argue today's wages result pushes the case for a 25bps move, rather than anything larger. Futures price in an implied rate of just below 0.65% for June, down around 3bps on the day.
Fig 1: AU-US Yield Differentials Rolling Back Over
Source: MNI - Market News/Bloomberg
- Other headwinds have materialized in terms of weaker US equity futures, while China tech related sentiment is giving back some of yesterday's gains. AUD/JPY is down around 0.60% for the day, to 90.38, after tracking above 91.00 at the start of the day.
- Commodities are a touch weaker, with Iron ore back to a $126/tonne handle, while oil is close to the days lows.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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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