4 1 Please click on the following links to view our Current Issuance CitiFirst MINIs and GSL MINIs (PDF) CitiFirst MINIs and GSL MINIs (excel) CitiFirst Instalment MINIs (PDF) and visit our new website au.citifirst.com to view all other CitiFirst Warrants Remember: All CitiFirst Warrants have 'O' as the fifth letter. All MINIs have 'K', 'M' or 'Q' as the fourth letter. GSL MINIs have 'L' and Instalment MINIs have 'J'. The Overview 24 March 2015 Foreign Exchange Forecasts – FOMC Less Patient, More Cautious? (Jeremy Hale 20 March 2015) A much more dovish than expected Fed post the March FOMC has created doubt about the USD bull market medium term. However, Fed concern about a strong USD will delay but not cancel Fed normalisation while more than twenty non-US Central Banks easing monetary policy this year so far keep policy divergence alive while we wait for the Fed. More generally, we think there is still another 10% or so to go in USD gains versus G10 currencies medium term. Stronger EA data near term and positioning unwinds may extend EUR upside for a while but a trend reversal is unlikely since the currency is critical to ECB plans for higher inflation/ inflation expectations. We still see sub-parity over 6-12m. USD/JPY continues to consolidate in similar fashion following previous QE announcements aftermaths. We still target 130+ medium term but this may need anticipation of news from either the Fed or any additional QE from the BoJ. The upcoming UK election will be a GBP flashpoint, but post-election policy risks are receding. We see sterling inbetween EUR weakness and USD strength. The story remains the same in the $Bloc. Weaker commodities and terms of trade will weigh on AUD, NZD and CAD and may force local central banks to ease further. In EM we have further cut our FX forecasts. We now expect EM FX vs. USD to weaken by 6% over 6-12m, versus 4% in February. CEEMEA remains the biggest drag (-11% vs. USD) compared to Asia (-3%) and Latam (-4%). Link to full article : https://ir.citi.com/m5k1MOEBm45u6EdA9Y0V4StcN5aXJP6rI89aU3T3YKt2DU0ld1OPEA%3D%3D Top Warrants & Stopped Out Warrants Warrant Code XJOQOA WBCJOK RHCKOE WPLKOR SIRKOE Previous day’s top warrants by value and volume Value Citi Warrant Code $1,014,440 Citi Sells XJOQOA $216,020 Citi Sells FMGQOB $178,598 Citi Sells SIRKOE $148,131 Citi Buys XJOKOY $133,049 Citi Buys KARKOF Volume 361,800 200,000 100,000 55,500 49,000 Citi Citi Sells Intraday Citi Buys Citi Buys Citi Sells Stopped Out Warrants Warrant Code Strike Stop Loss Remaining Value Stop Loss Date Final Listing Date WPLKOU NCMKOV 39.9638 14.9073 35.99 13.42 $3.92 $1.455 23/03/2015 23/03/2015 25/03/2015 25/03/2015 Headlines & Highlights Key data: US Existing Home Sales MoM (Feb) (1.2%, 1.7% exp, -4.9% prev). Eurozone Consumer Confidence (Mar A) (-3.7, -6 exp, -6.7 prev). Canada Bloomberg Nanos Confidence (Mar 20) (55, 54.6 prev). US Chicago Fed Nat Activity Index (Feb) (-11.0%, 10.0% exp, -10.0% prev). Federal Reserve Vice Chairman Stanley Fischer said raising interest rates from near zero “likely will be warranted before the end of the year” and subsequent increases probably won’t be uniform or predictable. “A smooth path upward in the federal funds rate will almost certainly not be realized” as the economy encounters shocks such as the surprise plunge in oil prices, Fischer, said on Monday in remarks to the Economic Club of New York. German Chancellor Angela Merkel encouraged Prime Minister Alexis Tsipras to follow the path set out by Greece’s creditors, saying his country belongs in Europe and she wants its economy to succeed. “We want Greece to be economically strong, we want Greece to have growth,” Merkel said. “And I think we share the view that this requires structural reforms, solid finances and a functioning administration.” Overnight Equities | S&P 2109 (0.0%) | Stoxx600 401 (-0.7%) | FTSE 7038 (0.2%) U.S stocks rose slightly on Monday, with the S&P 500 closing up by +0.1% following last Friday’s strong performance as data released showed that sales of existing homes rose +1.2% in February. Fed Vice Chairman Stanley Fisher said on Monday that raising interest rates “likely will be warranted before the end of the year” and that subsequent increases will not be uniform or predictable. Seven of the S&P 500’s ten main sector groups rose, led by gains in the Consumer Staples space. The worst performer of the S&P 500 was railroad operator Kansas City Southern, which fell -7.8% as they cut their full year revenue forecast. In Europe, market performance was mixed as most national benchmarks pulled back slightly from record highs achieved last week. The Stoxx 600 lost -0.7% as ECB President Mario Draghi spoke at the European Parliamentary committee during afternoon trade, saying that there has been increased momentum in Eurozone growth as a result of lower oil prices and declines in the euro. London’s FTSE 100 index touched a record peak early in the session, before pulling back slightly and closing up +0.2% to a new record close of 7,037.67 points. Greek stocks continued to be the largest outperformer in the region, with the Athex Composite index surging +2.97% in anticipation of an upcoming meeting with Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel in Berlin. Germany’s DAX 30 index lost -1.2% and the CAC 40 fell -0.7%. Foreign exchange | AUDUSD 0.7890 (1.03%) | DXY 96.8720 (-1.01%) | EURUSD 1.0957 (1.33%) The US dollar fell for a second straight session against a basket of major currencies on Monday after traders unwound bullish dollar positions on the likelihood that the Fed policy will be accommodative over the near term. EURUSD traded higher ahead of key European data today. EURUSD traded from 1.0620 to 1.1040 in the space of two hours during its overnight trading. The pound however, traded lower weighed by worries over the outcome of the national election in early May and doubts over whether British interest rates will rise any time soon. GBPUSD traded in the range of 1.4839-1.4989 overnight. The softening greenback has pushed the AUDUSD pair higher overnight. AUDUSD is currently trading at 0.7890, up 1.01% overnight. NZDUSD spiked higher late in yesterday’s trading session with rumours of a large exporter buy order. The Canadian dollar continued to strengthen against the greenback on Monday as last week’s US dollar selloff against major currencies was given another push by comments from the US Fed official. The Russian rouble was weaker in early trade on Monday, with a drop in crude prices outweighing higher demand for the currency due to monthly tax payments. Commodities | Gold 1190 (0.48%) | Oil (WTI) 47.41 (1.80%) | Copper 291.50 (5.05%) Gold continued to climb on speculation that the Federal Reserve will delay raising US interest rates. Crude advanced as the USD dropped against all but one of its 16 major counterparts, extending last week’s fall. The International Copper Study Group estimated Copper’s output deficit in 2014 was 475,000 metric tonnes.. Trading Calendar ECONOMICS - Aus ANZ Roy Morgan Weekly Consumer Conf. Index(110.8 prev) - Aus Conf. Board Leading Index MoM (Jan) (0.004 prev) - US Feb CPI China March Prelim Manuf. PMI UK Feb CPI Overnight Summary (Source: Reuters) Last 5,956 5,955 Change -19 -2 % Change -0.32% -0.03% Past Month 0.49% 1.29% Major World Indices Dow S&P500 Nasdaq -- Europe -UK Last 18,116 2,104 5,011 Change -12 -4 -15 % Change -0.06% -0.17% -0.31% Past Month 0.00% -0.25% 1.01% 7,038 15 0.22% 1.82% Germany 11,896 -144 -1.19% 6.87% Nikkei Hong Kong Korea 19,754 24,495 2,037 194 119 -1 0.99% 0.49% -0.03% 6.19% -1.03% 3.06% Currencies $A / $US $A / Stg $A / Euro Last 0.7887 0.52735 0.7202 Change 0.0238 0.0089 0.0027 % Change 3.11% 1.72% 0.38% Past Month 1.09% 4.49% 4.63% 96.983 -0.935 -0.95% 2.54% Australian Indices ASX 200 SPI -- Asia / Pacific -- DXY (USD Basket) A$ TWI $US / Yen Metals (LME) / Energy Gold - spot Oil - WTI 64.7 0.9 1.41% 1.25% 119.74 -0.29 -0.24% -0.79% Last Change % Change Past Month 1,191.00 46.85 8.36 1.13 0.71% 2.47% -0.89 -3.50 Metals (LME-3mth official, $USc / lb) Aluminium 81.56 0.09 0.11% 0.39% Copper 277.60 3.40 1.24% 7.90% Nickel 648.64 2.49 0.39% 1.24% 62.40 -1.65 -2.58% -11.93% 2475.00 31.00 1.27% -1.59% 53.71 54.81 1.71 0.15 3.29% 0.27% -13.55% -13.60% Last % Change A$ equiv Spread Thml Coal (Newcastle) SHFE Steel Rebar Iron Ore 3M Future usd Iron Ore Dual Listed Co's BHP Billiton plc Rio plc NWS A BHP ADR Cash Rates Australia US Euro 1,591 2,943 16.88 49.41 3.38% 0.96% 0.24% 2.81% 30.17 55.80 21.40 31.32 Futures 2.25 0.25 0.05 Next 2.11 0.13 0.00 Next + 1 2.00 0.22 0.03 2.75% 4.32% 0.81% 1.04% Contacts Elizabeth Tian 02 8225 6154 [email protected] Carsten Jensen 02 8225 6184 [email protected] web: www.citifirst.com.au ph: 1300 30 70 70 For further information please contact the CitiFirst Sales desk on 1300 30 70 70. 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