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Gilt/Bund spreads widest since 2019


Large Bund put spread


Big selling hit Futures, on the European cash open

AUSSIE: AUD/USD consolidated above $0.7400 late on Thursday, aided by a a
slightly softer than expected m/m U.S. CPI release, and as risk assets recovered
to a degree, with a lack of immediate escalation in the U.S.-China trade war
after the U.S. outlined the latest round of tariffs to be imposed on China
earlier this week, with a strong rally in Chinese stocks headlining.
- AUD/USD threatened a clean break below $0.7400 in early Asia-Pacific dealing,
with USD on the front foot, but the pair has stabilised, last dealing at
$0.7415. Initial support is noted at yesterday's low ($0.7357). Bears continue
to look for a close below the YtD low ($0.7311) to shift focus to tests of the
2017 lows. Daily studies are well placed for a fresh leg lower. Layers of
resistance have followed the pair lower and add to bearish confidence. Bulls now
need a close above the July 09 low ($0.7423) to gain breathing room and above
the 55-DMA ($0.7490) to hint at a move higher.
- Focus is likely to remain on global risk appetite, with one eye on a raft of
Chinese data, including Q2 GDP, scheduled for Monday.
MNI London Bureau | +44 0203-865-3809 |