The NZDUSD pair (affectionately known as the kiwi) hit a new March low today of 0.70879 during a risk on Asian session. NZ 10 year rates have also dropped to a March low squeezing the NZD and USD carry trade to its smallest margin this month. This drop in NZ 10 Yields is reflective across the globe, but also helped by the RBNZ buying bonds at the longer end of...
As the US 10 year yields rise - they impact more than just the price of stocks. The Carry trade or difference between a funding currency and investment currency is also impacted. While both New Zealand and the US ten year rates are rising, the difference between New Zealand 10 Year Yields and US 10 Year rates is diminishing. This makes the NZDUSD carry trade less...
Bond Yields are going higher and fast. Since January bond yields have increased across the board, rising quickly in the USA, Australia, New Zealand and Canada especially. Economies are rebounding and looking to show significant GDP growth during 2021 thanks to the rollout of the vaccine and reopening. This growth may (In the case of the US) be fuelled by...
NZ Ten Year Yields have rocketed up in recent days, reaching a high of 1.54% yesterday. This is a major climb from its yearly opening where it hovered around 1%. While Australian 10 Year Yields are also growing this year, a more dovish RBA has helped to cap yield gains. At its recent meeting, the RBA opted to increase its quantitative easing program by a further...
A Year in review...there is definitely something to be learned from reviewing old charts. The foundations of the year were laid in Q419/Q120 which became giant pivots in the flow. It would be wrong to talk about the new dogmas without ✅ the old ones. So,lets get straight in... 📌 Best of G10 FX... GBPUSD from 1.35-> 1.15 EURUSD from 1.09 -> 1.20 ...
The NZ yields are sitting above a psychological level of 1% and have been flirting with this level for a couple of weeks. This is undoubtedly driving demand for the commodity currency, which has now hit 0.722 along with the general risk on mood that is pervading markets at year end. As we go into the European trading session of the year, the big question is will...
While CA, US, JP and AU yields have dropped in the general risk off mood across markets, NZ Yields have gone against the grain and in the "yield- off" between the AU and NZ 10 Year Yields, NZ has just edged past their pacific neighbour, with the 1% target in mind. The AUDUSD is still trading at around $1.07, however indications are that this may dive lower, as...
📌 Buyers attacking and maintaining the pressure! Since the initial weakness we spotted at the lows, we have seen the birth of an impulsive leg higher: Of course this is very promising, buyers have much rather played the breakup and we got our momentum gambit! Well, for those wondering what rendered the base as valid, I would point you in the direction of...
NZ 10 Year yields have been soaring thanks to a more hawkish RBNZ which held rates at 0.25% when Australia lowered theirs to 0.10%. Talks of negative rates by Orr and other Bank members have dwindled. The impact is that NZ yields continue to climb and likely reach 1% before it's neighbours.
Comparing NZ 10Y Yield with AU 10Y Yield we can see the divergence opening up. The local stories in NZ are looking a lot worse than in Australia for now, depriving the NZ 10Y Yield of completing the base formation. On the currency side, the strategic link between AUD and NZD is being threatened by AUD breaking up and flirting to complete the leg towards 1.12...