Archived IMT (2009.05.20)

Fed's purchase of $7.7 bln in 10-year treasuries has accelerated the dollar decline and the resulting rally in commodities as was the case on march 18 when the Fed first announced treasury purchases. Recalling attention to the short AUDNZD trade as the 1.2850-70s resistance fails anew. In the event of further retreat in US equities, AUDNZD risks further selling towards 1.2650. But do keep an eye on yen bouncing off its lows in the event that stocks weakness extends into Asia. GBPJPY and EURJPY increasingly pressured at 150 and 132.