Whilst AUD and NZD have been volatile against the USD today, relative data outcomes continue to point in AUD's favour.
Fig 1: Relative Data Outcomes Pushing the AU-NZ Spreads Higher
Source: MNI - Market News/Bloomberg
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Spot USD/KRW changes hands -5.95 figs at KRW1,278.20 as greenback weakness persists in the wake of Monday's sales. Bears look for a retreat under Apr 29 low of KRW1,255.25 before targeting the 50-DMA at KRW1,239.80. Bulls need a clearance of May 12 high of KRW1,291.45 before taking aim at Mar 19, 2020 high of KRW1,296.75.
The latest round of Chinese property easing measures (the city of Hangzhou loosened requirements for second homes purchases) and confirmation that Hong Kong will press ahead with its planned easing of COVID-related curbs seems to be allowing the earlier risk-positive flows (which surrounded the COVID situation in Shanghai) to extend. That leaves e-minis 0.3-0.7% higher, while the Hang Seng leads gains in the Asia-Pac equity space (adding over 1.5% early on). U.S. Tsys are still 1-2bp cheaper on the day. FX trade sees the AUD atop the G10 FX table, while the JPY finds itself at the other end of the rankings.
AUD/USD has continued to push higher, up 0.50% and breaching the 0.7000 handle. Firmer risk appetite appears to be the main driver, with the RBA minutes not shifting local rates/bonds a great deal.