Westpac Global Markets Strategy Group
Monday 19th December 2011
|Text too small?|
Markets were not convincingly risk-negative over the weekend, despite soft data and a collective attack on Europe by the major rating agencies.
Ten-year bond yields in the safe-havens of the US and Europe both ended the day lower at 1.85%, while spreads naturally widened in those countries where credit ratingswere put under threat.
Equity indices were down in Europe but made small gains in the US, while commodities were generally higher - crude oil fell slightly but nickel rose 3.7%, copper 2% and gold 1.3%.
NZD ended the session above 0.76, while AUD failed to maintain its initial push above parity. NZD/AUD rose to 0.7620.
NZD/USD and AUD/USD outlook next 24 hours: Thinning markets into the Christmas period are likely to leave currencies trading sideways. Event risk is much higher for NZD this week, with Westpac consumer confidence at 10am today, NBNZ business confidence this afternoon, and the September quarter balance of payments (Wed) and GDP (Thurs).
No comments yet
NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington