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AUD Gains Into FY-End Amid Better Sentiment

FOREX

Antipodean FX edged higher in muted Asia-Pac trade amid a mild recovery in risk appetite. Sentiment firmed as participants digested the news that Moderna's Covid-19 vaccine is effective against the Delta variant, while a BBG trader source flagged demand for the AUD into the end of the fiscal year.

  • Official Chinese PMIs were closely watched, with a miss in Non-M'fing PMI coupled with a virtually in-line reading of M'fing PMI provoking little material reaction. The PBOC set their USD/CNY mid-point at CNY6.4601, marginally above sell-side estimate. USD/CNH shed ~30 pips, leaving yesterday's trough intact.
  • The DXY wavered around neutral levels through the Asia-Pac session. Fed's Waller struck an optimistic note re: economic recovery, noting that solid performance of U.S. economy warrants "puling back on some of the stimulus" earlier than expected.
  • U.S. ADP employment data & MNI Chicago PMI, UK & Canadian GDP reports, German unemployment & flash EZ CPI take focus on the data front. Comments are due from Fed's Bostic & Barkin, ECB's Panetta & BoE's Haldane.

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