Free Trial
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 post Asia close low in AUD/USD came early in the London session at just above 0.6880. From here we climbed back close to 0.6950, before settling back at 0.6925, which is where we currently sit.
- The A$ got some relief from the sharp pullback in US yields, with the US 2yr back to a 3.05% handle (-14bps). US recession fears seemingly the driver of the yield move. This move weighed more broadly on USD sentiment.
- This should help stabilize AU-US spreads at the short-end, we got to a -18.5bps low yesterday.
- Still, commodities presented a headwind, as global growth fears weighed. Base metals weakened further, off a further 2.7%, see the chart below where performance is plotted against AUD/USD. Iron ore was a little firmer though pushing back above $111 from sub $108. Oil also finished up from overnight lows.
- Equities were weaker, although declines in US stocks were fairly modest. The VIX dipped sub 29%. AUD/JPY dips sub 93.75 were supported and we are back around 94.25/30 currently.
- Today's data calendar has preliminary PMI readings for June.
Fig 1: AUD/USD & Base Metal Prices
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok