FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US Yields/Equities Weigh On Antipodean FX, CNY Continues Slide

FOREX
  • Initially On Thursday, the USD Index extended on the prior day’s declines, exacerbated by a firm rally in the Euro. EURUSD rose from 1.0825 to a high print of 1.0936 in early European trade. This prompted the DXY to retreat a further 0.5% and briefly trade back below 100
  • However, during the US session, continued upward pressure on US yields and equities extending to fresh session lows lent support to the greenback which recovered to print fresh highs for the day.
  • EURUSD fell roughly 90 pips off the earlier highs, narrowing the gap with the intra-day low at 1.0824.
  • In similar vein, USDJPY made fresh session highs above 128.64. Short-term pullbacks - as seen on Wednesday - may prove technically corrective. Recent activity reinforces underlying bullish conditions and signals potential for a continuation of the bull cycle, with the focus on 129.40/44, yesterday’s high as well as a Fibonacci projection.
  • The weakness in major equity benchmarks weighed on the likes of AUD and NZD, both falling around 1% and were the main underperformers. Despite the notable intra-day shift, both pairs simply erased the entirety of yesterdays gains and spot prices reside close to the week’s opening levels.
  • The last few days were marked by some significant moves in the CNY, with USDCNY breaking above the key 200DMA and probing resistance at the 6.45 level. The 200DMA has historically acted as a strong resistance; therefore, the bull trend could extend further in the near term following the recent breakout.
  • Approaching the APAC crossover, markets will turn their focus to a swathe of flash manufacturing and services PMIs, first for Australia and Japan before key European readings. Canadian retail sales will also be published before further comments at the IMF spring meetings from BOE Governor Andrew Bailey.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.