--------------(Snapshot at 8:18 a.m./2118 GMT)-----------------
FOREX (vs Late Sydney) DEBT FUTURES (Night Session) 0.9237 (0.9285) 90-DAY (DEC) 95.72 (95.65) 0.6182 (0.6200) 3-YR (DEC) 94.72 (94.63) 83.80 (83.75) 10-YR (DEC) 94.41 (94.38) 1.2314 (1.2309) US10-YR 3.34 (3.40)
AU$S/Term range *Support *Resistance *RSI-14 *MA-10 *MA-20
*0.9000/9300 *0.9120 *0.9310 *69.874 *0.9120 *0.8932
----------------------------(Oct 21)---------------------------
* Australian dollar offshore range $0.9181-0.9310
* Aussie slips from 14-month highs above 93 U.S. cents as weaker U.S. housing data weighed on stocks and hurt demand for higher-yielding currencies.
* New construction of U.S. homes rose less-than-expected in September and U.S. producer prices posted an unexpected decline, both pointing to a sluggish economic recovery.. That saw risk appetite take a bit of a breather.
* Aussie/yen eased from one-year highs of 84.32 yen to 83.79 yen. The yen fell against the U.S. dollar, easing about 0.15 percent to 90.72 per dollar.
* The U.S. dollar bounced back from a 14-month low against a basket of currencies as an array of policymakers commented on the greenback's decline and options related buying kept it from breaking past $1.50 against the euro.
* Commodities eased as oil dropped from 1-year highs while copper pulled back from 13-month highs. Gold also fell below $1,060 an ounce as the U.S. dollar bounced.
* Still, Aussie is likely to be supported around $0.9125 on expectations of steep rate hikes at home before the year end.
* Minutes from the Reserve Bank of Australia's (RBA) Oct. 6 policy meeting showed on Tuesday that it had shifted it emphasis to inflation from growth when it raised interest rates by 25 basis points..
* The market is now focused on the third-quarter inflation report, due on Oct. 28. An upside surprise could see investors increase bets on a 50 basis point hike in November.
* Implied cash rates, based on money market and swap rates , suggest a 35 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 405 basis points, reflecting the Aussie's growing yield allure.
* Australian bond futures were higher, tailing U.S. Treasuries which rose after the weaker-than-expected housing starts. Also supporting appetite for bonds were comments from a senior Federal Reserve official who said there were no prospects of tightening in the next several months..
* Three-year futures were 0.08 points higher at 94.72 while the 10-year contract added 0.035 point to 94.41.
(Reporting by Anirban Nag; Editing by Adrian Bathgate) (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 $0.9181-0.9310
* Aussie slips from 14-month highs above 93 U.S. cents as weaker U.S. housing data weighed on stocks and hurt demand for higher-yielding currencies.
* New construction of U.S. homes rose less-than-expected in September and U.S. producer prices posted an unexpected decline, both pointing to a sluggish economic recovery.. That saw risk appetite take a bit of a breather.
* Aussie/yen eased from one-year highs of 84.32 yen to 83.79 yen. The yen fell against the U.S. dollar, easing about 0.15 percent to 90.72 per dollar.
* The U.S. dollar bounced back from a 14-month low against a basket of currencies as an array of policymakers commented on the greenback's decline and options related buying kept it from breaking past $1.50 against the euro.
* Commodities eased as oil dropped from 1-year highs while copper pulled back from 13-month highs. Gold also fell below $1,060 an ounce as the U.S. dollar bounced.
* Still, Aussie is likely to be supported around $0.9125 on expectations of steep rate hikes at home before the year end.
* Minutes from the Reserve Bank of Australia's (RBA) Oct. 6 policy meeting showed on Tuesday that it had shifted it emphasis to inflation from growth when it raised interest rates by 25 basis points..
* The market is now focused on the third-quarter inflation report, due on Oct. 28. An upside surprise could see investors increase bets on a 50 basis point hike in November.
* Implied cash rates, based on money market and swap rates , suggest a 35 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 405 basis points, reflecting the Aussie's growing yield allure.
* Australian bond futures were higher, tailing U.S. Treasuries which rose after the weaker-than-expected housing starts. Also supporting appetite for bonds were comments from a senior Federal Reserve official who said there were no prospects of tightening in the next several months..
* Three-year futures were 0.08 points higher at 94.72 while the 10-year contract added 0.035 point to 94.41.
(Reporting by Anirban Nag; Editing by Adrian Bathgate) (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.