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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
A$ correlations continue to move around. Since last week's update, they have dipped for yield differentials, likewise for global commodities, but are higher for global equities.
- The table below presents the levels correlations for AUD/USD and various cross asset drivers for the past week and month.
- The correlations with yield differentials have dipped, although more so at the back end, remaining positive on a 2yr differential basis.
- The AU-US 2yr differential continues to fall, back to -43.5bps today, down around 12bps for the week. 5 and 10yr spreads have been steadier over the past week, although the skew remains to the down side.
- In terms of other cross assets, commodities and equities have remained on the backfoot for the most part, owing to recessionary fears. The A$ correlation with commodity prices has fallen though, but remains elevated for the past month, likewise for iron ore.
- For equities it has recovered, with the AUD generally following global sentiment shifts this past week.
Table 1: AUD/USD Correlations
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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