FOREX: Steady G10 FX Trends To Start Thursday Trade, Aust CAPEX Soon
Feb-27 00:17
G10 FX markets have had a relatively steady start in Thursday Asia Pac trade, outside of modest yen gains. The USD BBDXY index was little changed, last near 1286.6.
- USD/JPY has seen some modest volatility. We dipped to 148.75 in early trade, but now sit a little higher, last near 148.90/95. Recent lows at 148.57 remain intact.
- The early US Tsys yield bias is slightly firmer, with benchmark Tsys up a little over 1bps. This follows sharp recent losses though.
- Focus remains on tariff deadlines, with no word yet on planned Mexican and Canadian tariffs for March 4 will be delayed. The baseline reciprocal tariff date of April 2 was reaffirmed by US Commerce Secretary Lutnick.
- In the equity space, US futures are close to flat, with Nvidia headline results better than expected, but the detail less inspiring.
- AUD/USD is close to 0.6300, so unchanged for the session, while NZD/USD is holding under 0.5700. We had earlier remarks in parliament from RBA Deputy Governor Hauser but they didn't impact FX sentiment.
- In NZ, the ANZ Feb business confidence print rose to 58.4 from 54.4 in Jan. This reading is still sub late 2024 highs. Activity edged down to 45.1 from 45.8. It remains elevated by historical standards.
- Coming up shortly we have Q4 Australian Capex data. Otherwise the Asia Pac calendar is light.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUSSIE BONDS: ACGB Jun-54 Auction Goes Smoothly With More Demand
Jan-28 00:16
Today's result has continued the trend of firm pricing for ACGB auctions, as the weighted average yield printed 0.28bps through prevailing mids (per Yieldbroker). The cover ratio was 3.6500x versus 2.8233x previously.
- An outright yield which was around 35bps higher than the previous auction appears to have contributed to today’s bidding even though it was still 35bps lower than the November 2023 high.
- It is also important to acknowledge that improved sentiment towards longer-dated global bonds over the past month might have assisted the bid.
- The ACGB Jun-54 cash trade is slightly cheaper in post-auction dealings.
AUSSIE BONDS: ACGB Jun-54 Auction Results
Jan-28 00:09
The AOFM sells A$300mn of the 4.75% 21 June 2054 Treasury Bond, #TB169:
- Average Yield (%): 4.9405 (prev. 4.5951)
- High Yield (%): 4.945 (prev. 4.5975)
- Bid/Cover: 3.6500x (prev. 2.8233x)
- Allotted at Highest Accepted Yield as % of Bid at that Yield (%): 23.5 (prev. 70.1)
- Bidders: 58 (prev. 43), 22 successful (prev. 19), 15 allocated in full (prev. 11)
MNI: UK JAN BRC SHOP PRICES -0.4% M/M, -0.7% Y/Y
Jan-28 00:01
- MNI: UK JAN BRC SHOP PRICES -0.4% M/M, -0.7% Y/Y
