Antipodeans Bid, JPY Demand Into Tokyo Fix Wanes, GBP Gains On Brexit News

The Antipodeans firmed up in the generally lacklustre Asia-Pac session, as e-minis inched higher building on momentum from a positive session at Wall Street. With little in the way of notable news headlines and data releases, focus turned to market flow. A trader speaking to BBG pointed to AUD buying by exporters and offshore funds. Separately, our market source suggested that an early move higher in AUD/JPY could have been linked to demand from Japanese retailers, but the rate trimmed gains later on amid a round of light JPY purchases into the Tokyo fix. That said, this brief spell of JPY appreciation came and went, with the yen falling back towards the bottom of the G10 pile.

• USD and CAD were also among the worst G10 performers, with eyes already on the upcoming presidential debate in the U.S.
• GBP picked up a bid after the Times published a report suggesting that mood music surrounding the current stage of Brexit talks has improved, with Brussels reportedly expressing readiness to work on a joint legal text of a trade agreement.
• The yuan underperformed in Asia, with USD/CNH extending gains after a softer than expected PBoC fix. The rate managed to virtually erase yesterday's losses.
• Central bank rhetoric picks up today, with Fed's Williams, Harker, Clarida and Quarles, BoE's Bailey and Riksbank's Ingves due to speak. Key data releases include flash German CPI (alongside regional prints), final EZ consumer confidence and U.S. Conf. Board Consumer Confidence.