MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: German Insolvency Rate Slows, 2025 Pickup Expected

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: US REDBOOK: DEC STORE SALES +4.2% V YR AGO MO

US Q3 REV NONFARM PRODUCTIVITY +2.2%; Y/Y +2.0%

US NFIB NOV SMALL BUSINESS INDEX 101.7

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

AUD & CAD Bearing The Brunt of Late Equity Weakness, JPY Spin Cycle

FOREX
  • Wednesday has been highlighted by the impressive 400 pip intra-day range for USDJPY. Following the Bank of Japan standing pat, hawkish pre-positioning was aggressively unwound to reach highs of 131.58 before the start of European trade. However, with topside momentum unable to be sustained, the pair saw a swift and powerful reversal throughout the session, culminating in the pair printing fresh daily lows of 127.57.
  • The US session was a real tale of two halves. With the early JPY action heavily weighing on the broad USD index, the ensuing substantial weakness across major equity indices underpinned the greenback recovery.
  • AUD was one of the notable laggards, sinking around 1.7% from intra-day highs, with both AUD and CAD leading G10 losses approaching the APAC crossover. AUDUSD overall maintains a bullish technical theme and supports to watch reside at 0.6930/6860 (lows Jan 17 / 9) and 0.6854, the 20-day EMA.
  • In the same vein, the weaker risk sentiment prompted declines across emerging market FX, with specific weakness in the LatAm region. In particular USDMXN failed just shy of the 2020 lows around 18.52 and has since bounced over 1% to 18.85. Initial firm resistance is at 19.0401, the recent breakout point.
  • Aussie employment data kicks off Thursday’s docket, before US Philly Fed, Jobless Claims and Housing Starts highlight the US calendar.
  • On the speaker slate, ECB President Lagarde is due to participate in a panel discussion titled "Finding Europe's New Growth" at the World Economic Forum, in Davos before potential comments from Fed’s Collins, Brainard and Williams in the US session.
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.