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19 Mar 2015
AUD and NZD overnight price action - Westpac
FXStreet (Guatemala) - Sean Callow, Analyst at Westpac Banking Corporation noted the price action surrounding the Aussie and Kiwi overnight.
Key Quotes:
"AUD/USD drifted up from 0.7600 early London to 0.7660 as the Fed statement hit the screens. The Aussie reached 0.7750 during the Yellen press conference and as high as 0.7846 during the stop loss run on many FX pairs, easing back to 0.7750 in the Sydney morning."
"The Fed meeting isn’t a game-changer for AUD but should at least establish higher trading ranges for the week ahead. Australian yields tumbled in early Sydney trade, the 3yr -10bp to 1.75%, the 10yr -12bp to 2.34%. The more downbeat US outlook and the stronger AUD saw pricing for an April RBA cut increase to just over 50%."
"NZD/USD bounced from 0.7370 to 0.7475 on the Fed statement and press conference, printed a (screen) high of 0.7548 then steadied around 0.7475. There was a small bounce on NZ Q4 GDP but it was short-lived. GDP rose 0.8% q/q (in line with expectations) but the 3.5% y/y pace was slightly above consensus. The details held no real surprises. This left AUD/NZD weaker, falling from 1.0440 early London to 1.0360.
Key Quotes:
"AUD/USD drifted up from 0.7600 early London to 0.7660 as the Fed statement hit the screens. The Aussie reached 0.7750 during the Yellen press conference and as high as 0.7846 during the stop loss run on many FX pairs, easing back to 0.7750 in the Sydney morning."
"The Fed meeting isn’t a game-changer for AUD but should at least establish higher trading ranges for the week ahead. Australian yields tumbled in early Sydney trade, the 3yr -10bp to 1.75%, the 10yr -12bp to 2.34%. The more downbeat US outlook and the stronger AUD saw pricing for an April RBA cut increase to just over 50%."
"NZD/USD bounced from 0.7370 to 0.7475 on the Fed statement and press conference, printed a (screen) high of 0.7548 then steadied around 0.7475. There was a small bounce on NZ Q4 GDP but it was short-lived. GDP rose 0.8% q/q (in line with expectations) but the 3.5% y/y pace was slightly above consensus. The details held no real surprises. This left AUD/NZD weaker, falling from 1.0440 early London to 1.0360.