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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
It's very much a case of deja-vu for AUD/USD, as it recovers from overnight lows on the back of positive onshore yield momentum. We last sit just above 0.6900, around 0.50% above NY closing levels.
- Today's session is unfolding in a similar fashion to yesterday's one, with the A$ outperforming on the back of local yield gains. The currency is the best performer within the G10 FX space.
- The relentless rise in ACGB yields continues. The 10yr is only marginally off highs above 4.10%, still +14bps on the day. The 2yr is up by 174bps to 3.20%. The AU-US 2yr spread is back to -15bps, after being wider than -40bps earlier in the week.
- Two local kickers for yields today have been the minimum wage hike of 5.2%, while the market has also reacted to Lowe's interview from overnight around 'doing what it takes' to bring inflation back to the 2-3% range.
- Earlier, the Westpac consumer sentiment index fell 4.5% to 86.4. We are above 2020 lows, but not by much, see the chart below. Most of the decline came in the categories related to consumer finances and the outlook.
- ANZ's weekly consumer confidence measure dropped 7.6% last week. ANZ noted 'Outside of the pandemic, consumer confidence hasn't been this low since January 1991, the midst of the early 1990s recession.'
Fig 1: Westpac Australian Consumer Sentiment Index
Source: Westpac/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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