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A mixed start to the week on Wall St. saw the Dow Jones close -0.8%, the S&P 500 -0.1%, and the Nasdaq +0.3%. U.S. 10-year yields rose 11bps to 4.19%, while crude oil rose 1.7% to $70.40 a barrel. AUD/USD settled at the lower end of its 0.6652/.67225 range.
• Asian equities started the week mixed with the Shenzhen up 0.3%, the Hang Seng down -1.6%, and the Nikkei mostly unchanged. The ASX climbed 0.7% as gains in materials offset losses in IT stocks. AUD/USD set 0.6722 highs in the early afternoon following comments by the RBA’s Hauser noting a surprise in labour participation last week.
• European equities opened softer as the Stoxx, CAC, and DAX fell half a percent. The US 10yr climbed above 4.10% and brent was steady below $73.50 per barrel. EUR/USD and GBP/USD traded 30 points lower on the previous session following a miss in Germany’s September PPIs (-0.5% m/m vs -0.2% exp.).
• A quiet session into the London lunch saw the greenback churn higher as the antipodes fell to 0.6680 and 0.6050. USD/JPY briefly traded above 150 to find 150.09 while EUR/USD and GBP/USD found 1.0845 and 1.30135 lows. US equity futures were weaker ahead of open while brent pushed back to $74.50, up 2.0%.
• No data of note early in the NY session though the Leading Index for September was released later in the NY morning, printing at -0.5% against expectations of -0.3%. No reaction to the data though the USD moved slowly but steadily higher into the London rate set.
• AUD/USD fell to lows of 0.6662 while NZD/USD dipped to 0.6034 and EUR/USD and GBP/USD made respective lows of 1.08285 and 1.29895. USD/JPY rose to 150.28 while USD/CAD reached highs of 1.38445.
• Wall St was weaker from the open with the Dow around 0.5% lower in early trade with slightly more modest losses on the S&P and Nasdaq. Across the Atlantic, European markets remained heavy I late trade with the FTSE losing 0.5% while the CAC and DAX closed 1% lower on the day.
• Markets were more subdued heading into the NY afternoon though the USD remained firm. AUD/UD slipped a little further to hit lows of 0.6655 while NZD/USD dipped to 0.60265, EUR/USD made lows near 1.0815 and GBP/USD fell to 1.2978. USD/CAD fell just short of 1.3850 while USD/JPY was the biggest mover as it reached 150.80.
• Wall St. remained weak late in the day with the Dow Jones trading -.9%, the S&P 500 -.4%, and the Nasdaq -.1%.
To watch for
• NZ – Sep. Trade Balance
• NZ – RBNZ’s Silk Speaks
• CN – Oct. FX Net Settlement
• US – Oct. Philadelphia Fed Non-Manufacturing Index
• EU – ECB’s Knot, Centeno, Holzmann, Villeroy Speak
• UK – BOE’s Green, Baily, Breeden Speak
• US – Fed’s Harker Speaks
Here are the latest mid-market rates:
Currency Pair | Mid-market rate |
NZD/USD | 0.6029 |
NZD/AUD | 0.9059 |
NZD/JPY | 90.88 |
NZD/CNY | 4.3026 |
NZD/EUR | 0.5574 |
NZD/GBP | 0.4643 |
NZD/HKD | 4.6853 |
NZD/SGD | 0.7935 |
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