Flash: NZD swap market to support NZD? - RBS

FXStreet (Guatemala) - RBS strategists noted that the New Zealand business survey (own outlook) rose from 53.5 to 58.5 in Feb, extending to a new high in the series in two decades while they eye a break in 2yr NZD to the topside.

Key Quotes:

“Exports rose from 29 to 31, investment rose from 22 to 35, employment rose from 25 to 32. inflation expectations edged up from 2.5 to 2.6% a high since May-2012”.

“The data show strength in housing and high commodity prices has spread across the economy and suggests rate hikes are needed soon”.

“While these are probably fully priced, the data increase the risk of somewhat faster hikes. 2yr swap rates have firmed 1.5bp since the data”.

“Given the yield seeking nature of the current market near term risk is a topside break of the range in NZD over the last six months”.

Feb 28, 2014

Flash: Japanese corporate flows should remain JPY negative in March - Nomura

Nomura notes the increasing focus on the possibility of Japanese firm's repatriation as we Japanese fiscal year-end approaches.

Flash: Knock on mild on EM's, suppotred on better China? - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said, "Although the Ukrainian and Russian currencies are under pressure, the knock-on to other emerging markets has been mild at best. The MSCI Emerging equity index was up 0.1%, perhaps helped in part by the fragile stabilization of the Chinese yuan, whose weakness in recent days has caused some consternation."