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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
AUD/USD is off intra-day highs of just under 0.7200, but is still outperforming within G10 FX.
- AUD/USD dipped sub 0.7180 as China/HK equity sentiment have opened weaker. US equity futures are also off their highs.
- Still, AUD/JPY is still up close to 0.30% on the day, last at 92.65.
- The Caixin PMI was weaker than expected as well at 48.1, versus 49.0 expected, but showed sequential improvement on the previous 46.0 print. This hasn't had a lasting impact on sentiment though.
- Earlier, Q1 GDP in Australia came in better than expected at 0.8%, versus 0.7% consensus. YoY growth was 3.3%, also better than expected but down from the strong Q4 pace of 4%.
- Note that the Australian terms of trade rebounded strongly in the quarter, up close to 6%, see the chart below. We are now above the 2021 highs. This is no doubt supportive of the A$ from a valuation stand point.
Fig 1: Australian Terms of Trade Rebound Strongly In Q1
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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