--------------(Snapshot at 8:08 a.m./2108 GMT)-----------------
FOREX (vs Late Sydney) DEBT FUTURES (Night Session) 0.8776 (0.8727) 90-DAY (SEP) 96.06 (96.05) 0.5989 (0.5965) 3-YR (SEP) 95.06 (95.05) 78.59 (78.38) 10-YR (SEP) 94.745(94.72) 1.1996 (1.2127) US 10-YR 3.22 (3.22)
AU$S/Term range *Support *Resistance *RSI-14 *MA-10 *MA-20
*0.8570/8950 *0.8730 *0.8800 *59.921 *0.8726 *0.8689
-----------------------------(Oct 6)---------------------------
* Australian dollar offshore range $0.8720-0.8798.
* All eyes on the Reserve Bank of Australia's (RBA) monthly policy meeting at 0330 GMT on Tuesday, as speculation mounts the central bank may raise interest rates by 25 basis points, from a record low of 3 percent.
* Aussie rose to $0.8776, from Monday's $0.8727, aided by firmer U.S. stocks and commodity prices. Near-term support seen at $0.8730, with resistance around $0.8800, then $0.8815.
* Aussie edged higher on yen as well to 78.62, from Monday's 78.38 yen.
* Money market rates show investors pricing in a 60 percent chance of a rate hike on Tuesday, while October interbank futures show markets mulling a 50-50 chance of a move.
* Only last week, markets had largely dismissed the chance of a rate rise on Tuesday, but two influential local columnists had tipped on Monday a rise in rates this week. Their unanimity took investors by surprise, and knocked local bill futures lower.
* Talk of rate hikes was supported by strong job ads data on Monday, which showed the biggest rise since late 2007.
* December bill futures edged up 0.01 points to 96.06 early Tuesday, giving an implied rate of 3.94 percent. But that followed a beating on Monday as the market narrowed the odds of a hike.
* Bond futures also indicated higher after recent sell-off. Three-year bond futures were indicated 0.02 points higher at 95.06. The 10-year contract was also indicated 0.02 points higher 94.745.
* Expectations of Aussie's growing yield allure pushed the spread of Australian two-year swap yields over their U.S. cousins to 367.5 basis points, near a one-year high of 369.2.
* The spread of 10-year local cash yields over three-year cash yields narrowed further to 54.7 basis points, the lowest in over a month.
* U.S. stocks bounced back from a four-day losing streak on Monday, helped in part by data that showed the U.S. services sector grew for the first time since August 2008.
(Reporting by Koh Gui Qing)
((Guiqing.Koh@ThomsonReuters.com; Reuters Messaging; guiqing.koh.reuters.com@reuters.net; +61 2 9373 1821))
Keywords: MARKETS AUSTRALIA BONDS/FOREX (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Australian dollar offshore range $0.8720-0.8798.
* All eyes on the Reserve Bank of Australia's (RBA) monthly policy meeting at 0330 GMT on Tuesday, as speculation mounts the central bank may raise interest rates by 25 basis points, from a record low of 3 percent.
* Aussie rose to $0.8776, from Monday's $0.8727, aided by firmer U.S. stocks and commodity prices. Near-term support seen at $0.8730, with resistance around $0.8800, then $0.8815.
* Aussie edged higher on yen as well to 78.62, from Monday's 78.38 yen.
* Money market rates show investors pricing in a 60 percent chance of a rate hike on Tuesday, while October interbank futures show markets mulling a 50-50 chance of a move.
* Only last week, markets had largely dismissed the chance of a rate rise on Tuesday, but two influential local columnists had tipped on Monday a rise in rates this week. Their unanimity took investors by surprise, and knocked local bill futures lower.
* Talk of rate hikes was supported by strong job ads data on Monday, which showed the biggest rise since late 2007.
* December bill futures edged up 0.01 points to 96.06 early Tuesday, giving an implied rate of 3.94 percent. But that followed a beating on Monday as the market narrowed the odds of a hike.
* Bond futures also indicated higher after recent sell-off. Three-year bond futures were indicated 0.02 points higher at 95.06. The 10-year contract was also indicated 0.02 points higher 94.745.
* Expectations of Aussie's growing yield allure pushed the spread of Australian two-year swap yields over their U.S. cousins to 367.5 basis points, near a one-year high of 369.2.
* The spread of 10-year local cash yields over three-year cash yields narrowed further to 54.7 basis points, the lowest in over a month.
* U.S. stocks bounced back from a four-day losing streak on Monday, helped in part by data that showed the U.S. services sector grew for the first time since August 2008.
(Reporting by Koh Gui Qing)
((Guiqing.Koh@ThomsonReuters.com; Reuters Messaging; guiqing.koh.reuters.com@reuters.net; +61 2 9373 1821))
Keywords: MARKETS AUSTRALIA BONDS/FOREX (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
