--------------(Snapshot at 8:18 a.m./2118 GMT)-----------------
FOREX (vs Late Sydney) DEBT FUTURES (Night Session) 0.9283 (0.9180) 90-DAY (DEC) 95.65 (95.65) 0.6204 (0.6167) 3-YR (DEC) 94.62 (94.64) 84.06 (83.33) 10-YR (DEC) 94.325(94.36) 1.2265 (1.2320) US10-YR 3.39 (3.41)
AU$S/Term range *Support *Resistance *RSI-14 *MA-10 *MA-20
*0.9000/9300 *0.9125 *0.9350 *69.874 *0.9087 *0.8907
----------------------------(Oct 20)---------------------------
* Australian dollar offshore range $0.9150-0.9295
* Aussie was strong near 14-month highs as investors added to long positions in higher-yielding currencies and stocks after some better-than-expected results from U.S. companies boosted optimism about a sustained economic recovery.
* According to data compiled by Thomson Reuters, of the 62 companies in the S&P 500 that had reported results by midday Monday, 79 percent were above analysts' expectations.
* Commodities also jumped, lending huge support to the Aussie. Oil rose more than 1 percent, while copper surged to a
5
½ week high.
* The U.S. dollar struggled near 14-month lows as investors continued to short the greenback on expectations that U.S. rates would remain near zero for a while to come. Fresh data suggested weakness in the housing sector with the homebuilders sentiment index edging down in October.
* In Australia, focus shifts to the release of the minutes from the Reserve Bank of Australia's (RBA) October monetary policy board meeting. The minutes will be released at 11:30 a.m. (0030 GMT).
* Markets will be looking for the reasoning behind the bank's surprise 25-basis-points rise in the cash rate to 3.25 percent and whether the RBA was revising some of its economic assumptions now that the worst of the global downturn had passed.
* On Monday, RBA's assistant governor in charge of economics, Philip Lowe, reaffirmed the central bank's focus remained on keeping inflation on a leash and the need to return to more normal interest rates..
* Implied cash rates, based on money market and swap rates , suggest a 40 percent chance the central bank will raise rates by 50 basis points on Nov. 3.
* The spread of Australian two-year swap yields over their U.S. counterparts was at 14-month highs of 400 basis points, reflecting the Aussie's growing yield allure.
* The Aussie edged towards one-year highs against the yen , rising to 84.06 yen from 83.33 late here on Monday. Rising overseas investments from Japanese investors are likely to support the Aussie.
* Australian bond futures were lower on mounting speculation of steep interest-rate hikes before year-end. Three-year futures were indicated 0.01 points lower at 94.62 while the
10
year contract lost 0.025 point to 94.325.
(Reporting by Anirban Nag; Editing by Mark Bendeich) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS AUSTRALIA BONDS/FOREX (anirban.nag@thomsonreuters.com; Reuters Messaging; anirban.nag.reuters.com@reuters.net; +61 2 9373 1871) 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 $0.9150-0.9295
* Aussie was strong near 14-month highs as investors added to long positions in higher-yielding currencies and stocks after some better-than-expected results from U.S. companies boosted optimism about a sustained economic recovery.
* According to data compiled by Thomson Reuters, of the 62 companies in the S&P 500 that had reported results by midday Monday, 79 percent were above analysts' expectations.
* Commodities also jumped, lending huge support to the Aussie. Oil rose more than 1 percent, while copper surged to a
5
½ week high.
* The U.S. dollar struggled near 14-month lows as investors continued to short the greenback on expectations that U.S. rates would remain near zero for a while to come. Fresh data suggested weakness in the housing sector with the homebuilders sentiment index edging down in October.
* In Australia, focus shifts to the release of the minutes from the Reserve Bank of Australia's (RBA) October monetary policy board meeting. The minutes will be released at 11:30 a.m. (0030 GMT).
* Markets will be looking for the reasoning behind the bank's surprise 25-basis-points rise in the cash rate to 3.25 percent and whether the RBA was revising some of its economic assumptions now that the worst of the global downturn had passed.
* On Monday, RBA's assistant governor in charge of economics, Philip Lowe, reaffirmed the central bank's focus remained on keeping inflation on a leash and the need to return to more normal interest rates..
* Implied cash rates, based on money market and swap rates , suggest a 40 percent chance the central bank will raise rates by 50 basis points on Nov. 3.
* The spread of Australian two-year swap yields over their U.S. counterparts was at 14-month highs of 400 basis points, reflecting the Aussie's growing yield allure.
* The Aussie edged towards one-year highs against the yen , rising to 84.06 yen from 83.33 late here on Monday. Rising overseas investments from Japanese investors are likely to support the Aussie.
* Australian bond futures were lower on mounting speculation of steep interest-rate hikes before year-end. Three-year futures were indicated 0.01 points lower at 94.62 while the
10
year contract lost 0.025 point to 94.325.
(Reporting by Anirban Nag; Editing by Mark Bendeich) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS AUSTRALIA BONDS/FOREX (anirban.nag@thomsonreuters.com; Reuters Messaging; anirban.nag.reuters.com@reuters.net; +61 2 9373 1871) 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.