Asia overnight

Weaker-than-expected US ISM manufacturing data has given investor sentiment
a boost. Investors are reading the data as a sign the Fed’s rate hikes are working
and that the central bank may be able to back away a little from its hawkish stance.
Indeed, UST 10Y yields are down over 20bp since last week. Both S&P 500 futures
and Asian bourses were trading higher during the Asian session. G10 FX is less
convinced, however, and the DXY is down a modest c.0.5% since last week.
During the Asian session, the USD was modestly outpaced by the CAD and CHF.
The Antipodean currencies and the JPY underperformed the USD. The AUD was
weighed down by a surprise 25bp rate hike by the RBA vs the 50bp expected by
the market. The RBA’s move also weighed on the NZD ahead of Wednesday’s
RBNZ meeting.

Leave a Reply

Your email address will not be published. Required fields are marked *