MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUD/USD Off Highs, But Yields Differentials Trending Higher

AUD

AUD/USD sits slightly below session highs, the pair last 0.6675/80. We hit fresh highs earlier around 0.6690. Resistance at 0.6710, the May 16 high remains intact for now. Post RBA lows from Tuesday's session came in close to 0.6640.

  • RBA Governor Lowe's speech and Q&A hasn't impact FX sentiment a great deal. The main hawkish message from yesterday's +25bps outcome, with potentially more to follow, was largely reiterated.
  • AU yields are higher, with AU-US government bond yield differentials continuing to track in favor of the A$. The 2yr spread last at -62bps, close to YTD highs, while the 10yr spread is around +15bps, also close to YTD highs.
  • The slight Q1 GDP miss (0.2% q/q, versus 0.3% expected) didn't impact sentiment.
  • Some A$ weakness has likely filtered in from lower AUD/JPY levels. This pair has moved down from recent highs, last near 93.00. USD/JPY is offered slightly, while Japan equities were off more than 1% at one stage.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

To read the full story

Close

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.