USD Mixed as Foreign Demand for U.S. Assets Softens in April
Forex pairs in this Article »
AUD/USD
THE TAKEAWAY: [U.S. Net Long-Term TIC flows rises less than expected in April] > [Demand for treasury bonds remains strong amid risk aversion] > [AUDUSD mixed]
Easing foreign demand for U.S. financial assets in April surprised many economists. According to the Treasury International Capital (TIC) statement, released today by the U.S. Department of the Treasury, long-term net purchase of U.S. assets rose to $25.6 billion in April. March's estimate was revised slightly downwards to $36.0 billion from $36.2 billion initially reported. The median forecast of five economists polled in a Bloomberg News survey had called for net buying of $45.0 billion.
Net buying of U.S. treasury bonds and notes climbed to $37.3 billion in April from $20.1 billion in March, as investors sought safety in the U.S. bond market amid heightened uncertainty stemming from the euro debt crisis and concerns of a softening Chinese economy.
AUDUSD 1-minute Chart: June 15, 2012
Chart created using Market Scope - Prepared by Tzu-Wen Chen
Trading of the greenback against the higher-yielding, risk-correlated Australian dollar was mixed following the data release. At the time of this report, the AUDUSD pair was trading at $1.0024.
--- Written by Tzu-Wen Chen, DailyFX Research
Easing foreign demand for U.S. financial assets in April surprised many economists. According to the Treasury International Capital (TIC) statement, released today by the U.S. Department of the Treasury, long-term net purchase of U.S. assets rose to $25.6 billion in April. March's estimate was revised slightly downwards to $36.0 billion from $36.2 billion initially reported. The median forecast of five economists polled in a Bloomberg News survey had called for net buying of $45.0 billion.
Net buying of U.S. treasury bonds and notes climbed to $37.3 billion in April from $20.1 billion in March, as investors sought safety in the U.S. bond market amid heightened uncertainty stemming from the euro debt crisis and concerns of a softening Chinese economy.
AUDUSD 1-minute Chart: June 15, 2012
Chart created using Market Scope - Prepared by Tzu-Wen Chen
Trading of the greenback against the higher-yielding, risk-correlated Australian dollar was mixed following the data release. At the time of this report, the AUDUSD pair was trading at $1.0024.
--- Written by Tzu-Wen Chen, DailyFX Research
Free Annual Reports
