AUD: AUD/USD - Drifts Lower In A Quiet Asian Session
The AUD/USD has had a range today of 0.7067-0.7087 in the Asia- Pac session, it is currently trading around 0.7070,-0.15%. The AUD has drifted lower in a quiet Asian session after stalling toward 0.7100 overnight. I suspect until we see what those talks over the weekend bring we could be sitting in limbo as this market could really go either way from here. On the day, the first support is back toward 0.7020-0.7050, AUD bulls will be looking for this to hold for another test of the 0.7100 area, though I suspect a sustained break higher might be a lot to ask for with the event risk to come. I suspect we trade 0.6950-0.7150 until we get clarity from the talks, should make it a lively Asian open next week.
- "US, Iran Prepare for Talks With Lebanon Conflict Unresolved" - BBG
- Zerohedge on X: "If this ceasefire breaks and the US resumes its military campaign, that would be the beginning of a ‘worst case scenario’ where civilian infra is targeted..., WTI makes new highs and Equities make new lows. The feel of a binary outcome is likely to paralyze investors"- JPMorgan
- Options : Closest significant option expiries for NY cut, based on DTCC data: 0.6900(AUD393m). Upcoming Close Strikes : 0.6900(AUD1.57b April 15), 0.6965(AUD966m April 14), 0.7125(AUD1.35b April 15) - BBG
- The AUD/USD Average True Range for the last 10 Trading days: 65 Points
Fig 1: AUD/USD spot Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGBS AUCTION: 5-Year Supply Shows Strong Demand Metrics
Today’s 5-year JGB auction sent strong demand signals. The low price beat expectations at 99.81, while the bid-to-cover ratio edged up to 3.6886x from 3.0961x. Meanwhile, the tail narrowed to 0.01 from 0.03, suggesting a modest improvement in pricing tension.
- The result is better than the result seen at this month’s 10-year and last month’s poor 2-year auction.
- Overall, with an outright yield and the 2s/5s curve near cycle highs, today’s outcome will be seen a relief.
- In the aftermath, the 5-year sector is 2bps richer in afternoon trading.
JGBS AUCTION: 5-Year JGB Auction Results
The Japanese Ministry Of Finance (MoF) sells Y 1,921.6bn 5-Year JGBs:
- Average Yield (%): 1.633 (prev. 1.640)
- Average Price: 99.85 (prev. 99.82)
- High Yield (%): 1.636 (prev. 1.646)
- Low price: 99.84 (prev. 99.79)
- % Allotted At High Yield (%): 80.4120 (prev. 17.0987)
- Bid/Cover: 3.6886x (prev. 3.0961x)
JGBS AUCTION: Poll: 5-Year JGB Auction
*JAPAN 5Y GOVT BOND AUCTION MAY HAVE 99.81 LOWEST PRICE:POLL– BLOOMBERG
