Market Update - 6 March 2013

• Market seems pretty subdued even though Dow hit a record high last night, risk appetite in equity markets seems quite strong still…..for now. Little movement in other asset classes including the G10 currencies.

• EURUSD still supported at 1.3000 and AUDUSD pop back up to 1.0300. USDJPY still above 93.00 a break of 93.70 could see it test 94.70, a break of 92.00 support would see it track back to 90.80.

• USDMYR after a brief dip below 3.1000 earlier again trades above the 3.1000 handle. My view remains unchanged for now for a bias on the upside for USDMYR and its consistent with some G10 traders view of USD strength in the coming weeks.

• Italy’s bonds advanced for the first time in three days after European Union finance ministers opened the way for looser budget policies that may support growth.

• Treasuries declined for a second day as a report showed U.S. services industries expanded at the fastest pace in a year, damping demand for the safety of U.S. government securities.
  

• Benchmark 10-year yields rose as risk appetite climbed after China vowed to maintain its growth target and euro-area manufacturing and services shrank less than forecast. The yields touched a five-week low yesterday.