APAC Morning Update - 19/01/2021

The AUD opens at 0.7678 and the NZD at 0.7109.

 

If the question was what happened overnight, the answer is… not much. But the answer misses an important point. Nothing happened and risk sold off. The last 10 months have been characterised by the following: Sunny outside? Better buy the AUD and NZD. Raining? Good time to buy some AUD and NZD. The fact that this phenomenon appears to have changed, and the path of least resistance now appears to be lower, is a lot more interesting than thought.  

Epiphany’s aside, Thursday is shaping up as the day to watch, and to position for. In itself a fairly data heavy day, but the inauguration of Biden and the hopeful smooth transition of power will set the tone for sentiment for some time to come.

 
Global equity markets are off across the board: Dow -0.6%, S&P 500 -0.7%, FTSE -0.2%, DAX +0.4%, CAC +0.1%, Nikkei -1.0%, Shanghai +0.8%.

Gold prices are up 0.5%, currently trading at $1,837 an ounce. WTI Crude Oil prices are down 0.1% trading at $52.1 a barrel. 

NZDUSD 0.7109 -0.4%
NZDEUR 0.5888 -0.3%
NZDGBP 0.5234 -0.3%
NZDJPY 73.71 -0.4%
NZDAUD 0.9256 0.0%
NZDCAD 0.9073 -0.1%
GBPNZD 1.9102 0.2%

AUDUSD 0.7678 -0.4%
AUDEUR 0.6360 -0.3%
AUDGBP 0.5654 -0.3%
AUDJPY 79.62 -0.5%
AUDNZD 1.0799 0.0%
GBPAUD 1.7682 0.4%