Yen Surge ahead; Aussie Climb on Most Solid Employments Number Since ’91
March 13, 2014 5:41 am
The yen clinched a three-day surge against the dollar before reports in the U.S. and China that come in the middle of concern the world’s biggest economies are trimming its pace.
The kiwi dollar soared to a record versus the currencies of its exchanging partners as New Zealand became the first developed economy to hike interest rates since 2011. Australia’s dollar spiked up and bonds declined as employers increased the most full-time jobs since 1991. The lowest week for commodities since the opening of the year increased demand for Japan’s and Switzerland’s haven assets.
“It seems that the yen is one beneficiary of a more nervous world,” said Sean Callow, a Sydney-based currency strategist at Westpac Banking Corp. “We have retail sales in the U.S. and it’s hard to be optimistic there, given that consensus has consistently underestimated the impact of severe weather. Closer to home for dollar-yen there’s still a sense of unease over the China story.”
The yen was at 102.71 per dollar at 10:33 a.m. Tokyo time after skyrocketing 0.5 percent over the past three days. Japan’s currency exchanged at 142.76 per euro from 142.86, up 0.4 percent this week. Europe’s shared currency purchased $1.39 from $1.3903, after leaping to $1.3915 on March 7, the topmost since October 2011.
The franc, like the yen a traditional haven currency, was at 87.46 centimes to the U.S. dollar after appreciating 0.5 percent yesterday and reaching 87.35, the best performing mark since October 2011.
Low Volatility
Deutsche Bank AG’s Currency Volatility Index, based on three-month implied volatility on nine major currency pairs, was at 7.17 percent, set for its weakest close since December 2012. Standard & Poor’s GSCI spot index of raw materials has declined 1.9 percent this week, on tracked for its largest five-day decline since January 3.
Reports today are projected to display Chinese retail sales progressed at a 13.5 percent annual pace, while advances in industrial production slowed to a 9.5 percent rate, according to the median estimates in Bloomberg News surveys.
Retail spending in the U.S. probably rallied 0.2 percent in February from the previous month, when it retreated, data due today is assumed to reveal, according to a different poll. The Labor Department is projected to report that initial unemployment claims increased 7,000 to 330,000 in the week to March 8.
Kiwi, Aussie
The U.S. dollar has slumped 0.9 percent this year, according to Bloomberg Correlation Weighted Indexes, which track 10 developed-nation currencies. The yen skyrocketed 1.8 percent while the euro jumped 0.4 percent.
The kiwi held advances versus all 16 major counterparts this year as Reserve Bank Governor Graeme Wheeler indicated he will tighten policy further in coming months to damp inflation pressures after today lifting the cash rate to 2.75 percent, from 2.50 percent.
“Strength in the currency will not impede the hiking process, which does allow the New Zealand dollar to remain strong over the coming month,” said Sam Tuck, a senior foreign-exchange manager at ANZ Bank New Zealand Ltd. in Auckland. “They are linking the exchange rate to the terms-of-trade boost. This implies that, from the RBNZ perspective, the currency is strengthening for valid reasons.”
The RBNZ’s trade-weighted index for the kiwi rallied as high as 80.10, the best numerical for data going back to 1985 when the currency was floated. The kiwi escalated 0.5 percent to 85.62 U.S. cents after touching 85.66, the most since May 1, and surged as much as 0.5 percent to a six-year high of 88.03 yen.
Australia’s dollar climbed 0.8 percent to 90.55 U.S. cents after the statistics bureau said employers added 47,300 positions last month, topping the 15,000 increase projected in a Bloomberg survey. Full-time employment hiked by the most in more than 22 years. The unemployment rate held at a decade-high 6 percent.
The material has been provided by InstaForex Company – www.instaforex.com
The yen clinched a three-day surge against the dollar before reports in the U.S. and China that come in the middle of concern the world’s biggest economies are trimming its pace.
The kiwi dollar soared to a record versus the currencies of its exchanging partners as New Zealand became the first developed economy to hike interest rates since 2011. Australia’s dollar spiked up and bonds declined as employers increased the most full-time jobs since 1991. The lowest week for commodities since the opening of the year increased demand for Japan’s and Switzerland’s haven assets.
“It seems that the yen is one beneficiary of a more nervous world,” said Sean Callow, a Sydney-based currency strategist at Westpac Banking Corp. “We have retail sales in the U.S. and it’s hard to be optimistic there, given that consensus has consistently underestimated the impact of severe weather. Closer to home for dollar-yen there’s still a sense of unease over the China story.”
The yen was at 102.71 per dollar at 10:33 a.m. Tokyo time after skyrocketing 0.5 percent over the past three days. Japan’s currency exchanged at 142.76 per euro from 142.86, up 0.4 percent this week. Europe’s shared currency purchased $1.39 from $1.3903, after leaping to $1.3915 on March 7, the topmost since October 2011.
The franc, like the yen a traditional haven currency, was at 87.46 centimes to the U.S. dollar after appreciating 0.5 percent yesterday and reaching 87.35, the best performing mark since October 2011.
Low Volatility
Deutsche Bank AG’s Currency Volatility Index, based on three-month implied volatility on nine major currency pairs, was at 7.17 percent, set for its weakest close since December 2012. Standard & Poor’s GSCI spot index of raw materials has declined 1.9 percent this week, on tracked for its largest five-day decline since January 3.
Reports today are projected to display Chinese retail sales progressed at a 13.5 percent annual pace, while advances in industrial production slowed to a 9.5 percent rate, according to the median estimates in Bloomberg News surveys.
Retail spending in the U.S. probably rallied 0.2 percent in February from the previous month, when it retreated, data due today is assumed to reveal, according to a different poll. The Labor Department is projected to report that initial unemployment claims increased 7,000 to 330,000 in the week to March 8.
Kiwi, Aussie
The U.S. dollar has slumped 0.9 percent this year, according to Bloomberg Correlation Weighted Indexes, which track 10 developed-nation currencies. The yen skyrocketed 1.8 percent while the euro jumped 0.4 percent.
The kiwi held advances versus all 16 major counterparts this year as Reserve Bank Governor Graeme Wheeler indicated he will tighten policy further in coming months to damp inflation pressures after today lifting the cash rate to 2.75 percent, from 2.50 percent.
“Strength in the currency will not impede the hiking process, which does allow the New Zealand dollar to remain strong over the coming month,” said Sam Tuck, a senior foreign-exchange manager at ANZ Bank New Zealand Ltd. in Auckland. “They are linking the exchange rate to the terms-of-trade boost. This implies that, from the RBNZ perspective, the currency is strengthening for valid reasons.”
The RBNZ’s trade-weighted index for the kiwi rallied as high as 80.10, the best numerical for data going back to 1985 when the currency was floated. The kiwi escalated 0.5 percent to 85.62 U.S. cents after touching 85.66, the most since May 1, and surged as much as 0.5 percent to a six-year high of 88.03 yen.
Australia’s dollar climbed 0.8 percent to 90.55 U.S. cents after the statistics bureau said employers added 47,300 positions last month, topping the 15,000 increase projected in a Bloomberg survey. Full-time employment hiked by the most in more than 22 years. The unemployment rate held at a decade-high 6 percent.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: