A$ Weakest G10 Performer, AUD/JPY Back Sub 96.50

AUD/USD has stabilized somewhat after hitting fresh lows sub 0.6800 (low of 0.6798). The pair last in the 0.6805/10 region, still ~0.60% weaker for the session so far. After weakening post the RBA minutes, fresh weakness appears to be reflecting more of a risk off tone in markets.

• HK equities are weaker, with the tech sub-index down 2% at this stage. Home builders have also weakened. The China 5yr LPR was cut 10bps, although some in the market had been looking for a 15bps cut. So that is weighing on sentiment in terms of the stimulus outlook.
• Commodities across iron ore and copper are both down as well.
• AUD/JPY is down around 0.85%, last just below 96.50. Against recent highs near 97.70.
• The RBA minutes weakened the currency, although bond yields are also starting to stabilize somewhat. Our read of the minutes is not that dovish, although some change in wording around the need for further tightening, coupled with the decision to hike or not being finely balanced, may have impacted market sentiment.