APAC Morning Update - 10/02/21

The NZDUSD opens at 0.7233 and the AUDUSD opens at 0.7723

The Kiwi and the Aussie dollar remain within their ranges, though off slightly, with only the USD weaker. The USD really needs Elon Musk to tweet that he is buying some to find
some support these days…

We know we have mentioned inflation a lot lately, but that is because it is the one thing that could drastically be a huge wake up call, and could really change the markets perception of the future, basically instantly. The reason we think the CPI data out of the States overnight is going to be extra interesting, is the amount of time the Fed have mentioned they are not worried about it, that even if it comes in high, it will be temporary, and they want it high anyway, so nothing to see here. Our hunch is they know a big number is coming out. Now, it is monthly data, so it can be a little volatile anyway, but it is already expected to come in at 0.3% m/m. Let's say that it beats it, and it beats it big - comes in at 0.6%. Hypothetically, after some very rough maths, someone is going to go "Ah, that’s annualised at 6%, and I’m getting a 0.2% yield on my 3 year bonds? I might just sell a couple of those…"

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

Gold prices are up +0.2%, currently trading at $1,835 an ounce. WTI Crude Oil prices are also up 0.5% trading at $58.2 a barrel. 


NZDUSD 0.7233 0.2%
NZDEUR 0.5975 -0.3%
NZDGBP 0.5241 -0.2%
NZDJPY 75.66 -0.4%
NZDAUD 0.9363 -0.2%
NZDCAD 0.9190 -0.1%
GBPNZD 1.9077 0.2%

AUDUSD 0.7723 0.3%
AUDEUR 0.6380 -0.2%
AUDGBP 0.5598 -0.1%
AUDJPY 80.81 -0.2%
AUDNZD 1.0678 0.1%
GBPAUD 1.7863 0.1%