APAC Morning Update - 04/03/21

The NZDUSD opens at 0.7250 while the AUDUSD opens at 0.7792

The NZD and the AUD are still in their ranges for the week. The NZD and the AUD are starting to edge towards the lower end as yields in the US start creeping up again. It is not as large a move as last time, or rather the move isn’t as quick, but it is going to start worrying some central banks if it gets much higher.

It is an interesting time out there. So much of the recovery has been predicated on central banks response, and ultra-stimulatory policies. In the US they are drawing up a timeframe of 3 months before being vaccinated and basically back to normal. This is pretty quick, and is probably a lot quicker than other countries projections. However, assuming they are all back to normal in 3 months, then is stimulus going to last as long as thought? Is the fiscal response going to be as large? These questions are what is helping to raise the yield, but these questions are also what is going to potentially hurt risk plays. Remember, and this is something the market can seem to forget, is that good news is eventually good news, it is just the transition back to normalcy that could be a little bumpy.

Global equity markets are mixed: Dow +0.1%, S&P 500 -1.0%, FTSE +0.9%, DAX +0.3%, CAC +0.4%, Nikkei +0.5%, Shanghai +2.0%.

Gold prices are off -1%, currently trading at $1,717 an ounce. WTI Crude Oil prices are up 3.1% trading at $61.5 a barrel

AUDUSD 0.7792 -0.5%
AUDEUR 0.6457 -0.3%
AUDGBP 0.5581 -0.5%
AUDJPY 83.37 -0.3%
AUDNZD 1.0748 0.2%
GBPAUD 1.7918 0.5%

NZDUSD 0.7250 -0.7%
NZDEUR 0.6007 -0.5%
NZDGBP 0.5191 -0.7%
NZDJPY 77.57 -0.5%
NZDAUD 0.9303 -0.2%
NZDCAD 0.9158 -0.6%
GBPNZD 1.9259 0.7%