Market Update - 7 March 2013

• It was all a US Dollar story last night after ADP Research Institute said companies added more jobs than forecast last month, spurring bets U.S. nonfarm labor data will show stronger hiring. Dollar strength finally caught up with the US equity markets that continued to rally, risk appetite is definitely on last night and expecting it to continue here in Asia today.

• USDMYR finally traded higher above the 3.1000 handle, opening at 3.1150. EURUSD and USDJPY is leading the way in USD strength with EURUSD breaking 1.3000 while USDJPY rocketing to 94.20. I am still biased on more upside for USDMYR in the short-medium term, as for this week, Draghi will be speaking tonight so it will either fuel further USD strength or reverse the trend and get back to previous technical support levels.
  
• U.S. Treasuries fell for a third day as the Federal Reserve’s Beige Book business survey said the economy expanded at a modest to moderate pace across most of the country.

• As we mentioned previously, the market is trying to sell the Treasuries but with Fed Chairman Ben S. Bernanke and Vice Chairman Janet Yellen both said over the past two weeks the central bank should maintain stimulus efforts, market is finding it hard to justify getting out of treasuries. The central bank bought $1.46 billion of Treasuries today in a program to support the economy; until the Fed decides to ease its stance on further easing we should see US Treasuries supported for now.

• The Dow Jones industrial average DJI rose 42.47 points, or 0.30 percent, to 14,296.24, another record closing high. The Standard & Poor's 500 Index .SPX edged up 1.67 points, or 0.11 percent, to 1,541.46.