The ASX is set to open in positive territory as it returns after the Anzac Day public holiday, following Wall Street higher.
ASX: After a day off for the Anzac Day holiday, the local sharemarket is set to return with a bang with futures pointing to strong open. At 7:40 AEST, futures have the ASX up 41 points, or 0.7 per cent, at the open.
The Australian Dollar failed to get relief from the selling on Wednesday thanks to the fast money crowd chasing the US Dollar higher recently. AUD/USD is pushing closer for a test of the December 8 low of 75.02 US cents per AUD.
Currently, the fundamental background forces look favourable. Since February, a key correlation has been the spread between the AU/US 2-year sovereign yield spread that turned negative earlier this year with the US now offering a premium to Aussie benchmark rates.
Currently, the yield spread is -0.384 percent which poses a risk should the correlation hold. Traders who look at technical studies will note that AUD/USD is closing in on the -1 standard deviation level of the 12-month average of 77.48 at 75.68 US cents per AUD.
ASX: After a day off for the Anzac Day holiday, the local sharemarket is set to return with a bang with futures pointing to strong open. At 7:40 AEST, futures have the ASX up 41 points, or 0.7 per cent, at the open.
The Australian Dollar failed to get relief from the selling on Wednesday thanks to the fast money crowd chasing the US Dollar higher recently. AUD/USD is pushing closer for a test of the December 8 low of 75.02 US cents per AUD.
Currently, the fundamental background forces look favourable. Since February, a key correlation has been the spread between the AU/US 2-year sovereign yield spread that turned negative earlier this year with the US now offering a premium to Aussie benchmark rates.
Currently, the yield spread is -0.384 percent which poses a risk should the correlation hold. Traders who look at technical studies will note that AUD/USD is closing in on the -1 standard deviation level of the 12-month average of 77.48 at 75.68 US cents per AUD.
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