A report that Nippon Life may shift away from U.S. dollar bonds has also supported yen buying. |
Around 75 cents is the sell zone, which is close to the 100-day moving average which provided a bridge too far over the past nine months. |
As such, currency moves are being exaggerated as small lumpy flows meet low liquidity. |
Heightened concerns over inflation risks in the U.S. and a consequent monetary policy-induced slowdown in economic growth are keeping U.S. dollar bulls in check, |
Heightened concerns over inflation risks in the U.S. and a consequent monetary policy-induced slowdown in economic growth are keeping U.S. dollar bulls in check. |
Heightened inflation concerns could curb expectations of an easing from the Reserve Bank in the near term. |
Higher metals prices and poor US dollar sentiment are offsetting a declining yield advantage for the Aussie, but we still see it expensive north of $0.7500. |
It plays to the risks of the Reserve Bank of New Zealand cutting rates earlier than its current track suggests. |
It will be a tough first half of the year for the U.S. dollar with the Fed peaking with rates. The euro will do okay in the first half on expectations the ECB will tighten rates. |
It's more of the same, with the perception that carry trades are being unwound, and that Japanese bond yields rose further today probably added to that trend. |
Perceptions that Japanese interest rates would not be rising much appeared to reverse earlier concerns about an end to carry trades, which supported the Australian dollar. |
The Australian dollar is being hurt by the rise in global bond yields, driven by expectations all three major central banks will be raising interest rates this year. This is hurting commodities. |
The commodity price story has continued to be positive for the Australian dollar. |
The Fed is still going to 5 percent and therefore Australia's yield advantage will continue to narrow. |
The news on the Australian economy has been far from upbeat. A benign consumer price index report will make the likelihood of another RBA rate hike disappear completely and this will potentially weigh on the Australian dollar. |