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AUD Outperforming In Asia


The AUD is the strongest performer in the G-10 space at the margins on Monday, benefitting from the improving risk sentiment in Chinese and Hong Kong equities after China Securities Regulatory Commission cut the levy charged on stock trades from 0.1% to 0.05%. It is the first time the levy has been cut since April 2008.

  • AUD/USD is up ~0.4%, marginally paring gains of as much as 0.6% as the Hang Seng retreated from session highs. Despite today's price action technically the outlook for Aussie is bearish, support comes in at $0.6535 (low from Aug 17) and resistance is at $0.6488 (high from 24 Aug).
  • Kiwi is a touch firmer, NZD/USD has dealt in a narrow range consolidating above the $0.59 handle.
  • Yen was marginally pressured as US Tsy Yields firmed in early trade before paring losses to sit little changed from opening levels. USD/JPY remains in an uptrend, resistance is at ¥146.63 (high from Aug 25 and bull trigger) and ¥146.93 (8 Nov 22 high). Support comes in at ¥144.39 (20-Day EMA).
  • Elsewhere in G-10 GBP and EUR are both ~0.1% firmer reflecting the broader USD move.
  • Cross asset wise; the Hang Seng is up ~2% having been up as much as ~3% in early trade. US Tsy Yields are little changed across the curve. BBDXY is down ~0.1%.
  • There is a thin docket on Monday, UK markets are closed due to the observance of a national holiday and wider liquidity will be affected.

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