Prior analysis:
A strong end to the week for the Antipodean Dollars and considerably firmer rebounds from lows vs their US counterpart, as AUD/USD takes a firmer grasp of the 0.7800 handle and NZD/USD tags along. The Aussie has shrugged aside somewhat disappointing preliminary consumption figures for January amidst a spike in bond yields, partly in catch up trade, but also on the back of Westpac lifting its 10 year cash rate forecast for end 2021 to 1.9% from 1.5% and a tad more than the US Treasury equivalent to widen the differential marginally (latter now seen at 1.8% vs 1.5% previously). Meanwhile, the Kiwi has revisited 0.7265+ w-t-d peaks by virtue of the fact that the AUD/NZD cross remains capped below 1.0800 more than anything NZ specific although the output component of Q4 PPI rose 0.4% from -0.3% in the prior quarter.
A strong end to the week for the Antipodean Dollars and considerably firmer rebounds from lows vs their US counterpart, as AUD/USD takes a firmer grasp of the 0.7800 handle and NZD/USD tags along. The Aussie has shrugged aside somewhat disappointing preliminary consumption figures for January amidst a spike in bond yields, partly in catch up trade, but also on the back of Westpac lifting its 10 year cash rate forecast for end 2021 to 1.9% from 1.5% and a tad more than the US Treasury equivalent to widen the differential marginally (latter now seen at 1.8% vs 1.5% previously). Meanwhile, the Kiwi has revisited 0.7265+ w-t-d peaks by virtue of the fact that the AUD/NZD cross remains capped below 1.0800 more than anything NZ specific although the output component of Q4 PPI rose 0.4% from -0.3% in the prior quarter.