Tuesday, April 5, 2011

Tuesday 05/04/2001 FX Comments

AUD weaker post surprise trade numbers.


RBA left rates unch as expected and their language consistent with prev. re comment on strength of AUD keeping infl down.

Resumption of coal output taking longer than expected ..being pushed by the AUD bears .

NZD higher. Fin Min – I would be surprised if another cut needed.



FT - Portugal fears again.. Article in the FT highlighting their 10% yields and moody’s catching up with S&P / Fitch by downgrading them this am.

We noted CTA interest to reduce USD shorts on a few axes yday…some retraced by the end of the day ..some didn’t ….USDCAD for eg.


UK PMI services a key for the UK . But we’ll need a number close to 55 to persuade mkt a May rte hike may occur.


Flows

JPY - A small standout of USDJPY selling from Japanese base EURGBP - Real money name has sold EURGBP at 0.8800 lvl Asian FX – Models and Macro have sold USDINR Quant base sell USDIDR









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