7 March Daily Analysis

headlinesMarket in Details
FX:
USD bulls back in the driver’s seat reclaiming about half of the losses from Thursday’s highs, with JPY the one exception within G-10; RBA decision in Asia session with China foreign reserves potentially adding to event risk. USD/JPY paring session losses to trade virtually unchanged into the session close; JPY had been the one standout to broad dollar gains throughout the trading day
Aussie down 0.1% to 0.7587 into New York close ahead of RBA decision. AUD/USD trading lower, heavy into the session close but holding significant multiple DMA supports beginning at 0.7533 50-DMA.
NZD/USD trading near session lows, feeling the worst of the USDs bid tone within G-10. NZD trading to January lows toward 0.6960
Rates:
Aussie Sovereign bonds fall ahead of today’s RBA decision where all 29 economists surveyed by Bloomberg see no change. Yield on Australia’s 3-year govt note add 1bp to 2.017%; 10-year climbs 1bp to 2.815%
Treasury yields were higher led by the longest-maturity issues, with the 10-year yield up by about a basis point at 2.49 percent.
German bonds rose, sending 10-year yields lower by one basis point to 0.34 percent on haven demand.
French bonds dropped as former Prime Minister Alain Juppe said he won’t enter the race for the Presidency, reducing the chances of anti-euro candidate Marine Le Pen being eliminated in the first round of voting.
Equites:
S&P 500 Index dropped 0.3% to 2375; Dow Industrials fell 51 to 20,954.34, gauge passed 21,000 for the first time Wednesday; Nasdaq Composite fell 0.4% to 5849. Financial shares slipped 0.9% as Navient, Lincoln National and MetLife lost at least 1.6%. Consumer discretionary stocks fell 0.4%, dragged down by department stores Macy’s and Kohl’s
European stocks fell in a broad decline, following their best weekly gain since December, as mining shares dropped with copper prices and Deutsche Bank AG helped drag lenders lower. The Stoxx Europe 600 Index fell 0.5 percent at the close. Dax down 0.6% at 11,958.4. FTSE 100 down 0.3% at 7,350.12
Commodities:
Iron ore down 1.7% to $89.73/MT and below Feb low and the 21-DMA that has held since Feb 7
West Texas Intermediate crude slipped 0.2 percent to settle at $53.20 a barrel. Clashes between armed factions in Libya curbed crude output, while U.S. drilling increased.
Copper futures tumbled 1.6 percent after the biggest inflow of the metal in 15 years to warehouses managed by the London Metal Exchange, according to bourse data released Monday.
Gold futures slumped 0.1 percent to settle at $1,225.50 an ounce in New York for a fifth day of losses. That’s the longest slump since November.
Regards All.
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