The Insatiable Appetite For Risk Ensues

The U.S. dollar was significantly weaker today as the desire to take risk soared. The AUD/USD made fresh multi-decade highs, coming up just shy of the 1.07 figure, and the USD/CAD made new 3-year lows as crude oil continued to push higher. The Scandinavian currieries were no slouches today either, as USD/SEK fell by around 1.26% and USD/NOK declined nearly 1.04%, partially fuel by the Riksbank’s decision (Sweden’s Central bank) to raise their interest rate by 25bps to 1.75% earlier today. Precious metals continue to defy gravity, as silver broke above the $45 handle and Gold broke above the key psychological $1500 level. March U.S. existing home sales came in stronger, rising to 5.1M from an upwardly revised 4.92M a month ago adding to this ‘feel good’ sensation. U.S. equities gapped open higher and managed to hold onto nearly all of their gains. The Dow Jones Industrial Average finish the day higher by about +1.52 while the S&P 500 rose around +1.35%. Commodities were also higher with oil rising roughly +2.84%, and silver saw another huge day as it advanced nearly +2.70% while gold followed behind with a +0.30% gain. U.S. 10-yr Treasury yields finished the day higher by about 3.9bps to 3.402%. On the data front for the upcoming Asia/Pacific session is New Zealand Mar. Net Migration, Apr. ANZ Consumer Confidence, Australian 1Q Producer Price Index (PPI), New Zealand Mar. Credit Card Spending and Japan’s Feb. Leading & Coincident Indexes.