May 16, 2022 02:34 GMT
AUD/USD has reversed sharply, dropping nearly 1% from intra-day highs (0.6960) to sit sub 0.6900. It is the weakest performer in the G10 FX space. Weaker China data is the main driver of softer sentiment.
- The A$ started to move off its highs after the CNY fix printed slightly weaker relative to expectations. A lack of movement from the PBoC's in 1-year MLF operations (net liquidity and interest rates unchanged) also left the markets a little disappointed.
- The sharp downside surprise in terms of the China April data kicked off more aggressive selling pressure though. The IP contraction and slowing infrastructure investment weighed.
- The flow on effects to equity futures and commodity prices, with oil and iron ore off recent highs, has been an additional headwind.
- AUD/JPY is down over 1 big figure but has seen stability sub 89.00.