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A$ and NZD See Negative Spill Over From USD/CNH Break Higher

FOREX

The break higher in USD/CNH (through 7.1000) has seen USD indices regain a positive footing, the BBDXY back to 1246.25/50. Most of the weakness has been felt by AUD and NZD. AUD/USD is now off 0.40%, last 0.6510/15. Recent lows come in close to 0.6490. NZD/USD was last 0.6030/35, fresh lows in the pair back to Nov last year.

  • Only JPY is higher for the session against the USD, as a slight risk averse tone emerges. USD/JPY is around 140.20/25 currently. EUR/USD is back to the low 1.0700 region.
  • In the cross asset space, US equity futures are a touch weaker but still in positive territory. US yields are not too far off session lows.
  • Regional equities are weaker, led by HK/China moves.

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