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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 has given up early gains, dipping by as much as 0.50% from last closing levels to the low 0.6900 region. We have stabilized somewhat at just above 0.6920.
- Yen crosses have slumped weighed by weaker US equity futures, although the AUD/JPY fall looks a little large compared to the equity trend, see the chart below. There have been divergences in the past month though.
- AUD/JPY is back to the low 93.00 region. The pair found support sub this level late last week.
- Outside of equities yield differentials continue to move against the AUD. The AU-US 2yr spread is now -33bps, down a further 2bps from the end of last week.
- Commodities are painting a more supportive picture. Iron ore is back above $119/tonne, likely aided by a further easing of Covid restrictions in Beijing and Shanghai. Copper is slightly above last week's closing levels.
Fig 1: AUD/JPY & Eminis (Past Month)
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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