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27 Jun 2013
Flash: Commodity-based currencies outperform rest – NAB
FXstreet.com (New York) - The AUD is actually the third best performing G10 currency overnight, after the NZD followed by the CAD – “This is ironic with so much attention on falling precious metals prices and with industrial metals lower across the board albeit to a much lesser extent.” writes the NAB Research Team.
“A modest fallback in US bond yields after the third estimate of US GDP printed 1.8% against 2.4% previously and expected is part of the reason here. We have also had a variety of comments from central bankers that have gone some may to soothing nerves regarding the end of ultra-easy monetary policies around the globe.” the team notes.
After news yesterday that the PBOC had been providing liquidity to banks on a selective basis, ECB president Draghi added to his comments from Tuesday when he said the OMT (‘whatever it takes’) policy is even more necessary today. Overnight, he re-iterated that the ECB stands ready to act when needed and that an exit from easy policy settings ‘remains distant’.
“A modest fallback in US bond yields after the third estimate of US GDP printed 1.8% against 2.4% previously and expected is part of the reason here. We have also had a variety of comments from central bankers that have gone some may to soothing nerves regarding the end of ultra-easy monetary policies around the globe.” the team notes.
After news yesterday that the PBOC had been providing liquidity to banks on a selective basis, ECB president Draghi added to his comments from Tuesday when he said the OMT (‘whatever it takes’) policy is even more necessary today. Overnight, he re-iterated that the ECB stands ready to act when needed and that an exit from easy policy settings ‘remains distant’.