APAC Morning Update 10/03/21

Xe Corporate APAC

March 10, 20212 min read

Hands counting US dollar bills

The NZDUSD opens at 0.7161 and the AUDUSD opens at 0.7722.

The NZD and the AUD found support overnight above 0.7100 and 0.77 respectively as risk currencies globally took some ground back from the recent surge in the USD.

The USD strength all came about after the Feds reluctance to push back against higher treasury borrowing costs or rate hike expectations.

On top of that, Biden’s $1.9 trillion dollar package should accelerate a growing US economy, potentially putting more pressure on inflation and rising treasury yields.

Australian business confidence:
Australian business confidence has risen to its highest levels in eleven years, as companies begin to hire and invest again. The OECD expects Australia to expand +4.5% in 2021.

Equities:
The stay at home tech stocks rallied back overnight, as the Nasdaq had its biggest rally since November. And for a day at least, the rotation from growth shares to value reversed, as risk assets became the flavour of the day once again.

Strategy:
Exporters would have enjoyed the sell-off over the last week, and it may be time for importers to now look at orders higher again, with risk currencies finding support overnight.

Global equity markets were higher overnight - Dow +0.9%, S&P 500 +2.0%, FTSE +0.2%, DAX +0.4%, CAC +0.4%, Nikkei +1.0%, Shanghai -1.8%.

Gold prices are up 2.2%, currently trading at $1,714 an ounce. WTI Crude Oil prices are off, down 1.50% trading at $64.09 a barrel.

NZDUSD 0.7167 0.4%
NZDEUR 0.6023 0.1%
NZDGBP 0.5160 0.1%
NZDJPY 77.75 0.1%
NZDAUD 0.9291 -0.2%
NZDCAD 0.9057 0.3%
GBPNZD 1.9380 -0.1%

NZDUSD 0.7167 0.4%
NZDEUR 0.6023 0.1%
NZDGBP 0.5160 0.1%
NZDJPY 77.75 0.1%
NZDAUD 0.9291 -0.2%
NZDCAD 0.9057 0.3%
GBPNZD 1.9380 -0.1%