Free Trial
SCHATZ TECHS

(U2) Short-Term Trend Needle Still Points North

BOBL TECHS

(U2) Corrective Cycle Still In Play

BUND TECHS

(U2) Remains Below Last Week’s Highs

AUDNZD

Relative Data Momentum Still Supportive

US TSYS

Modestly Cheaper On The Day

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Aussie Dollar Lags, Greenback Shakes Off Weakness

FOREX

The Aussie dollar went offered, lagging better risk sentiment, amid positioning ahead of this weekend's federal election. This week's opinion polls have shown the race tightening, with the prospect of a hung parliament likely putting some participants on the defensive. On the eve of the election day, the opposition Labour party remains ahead of the ruling Liberal/National Coalition, but PM Morrison could still replicate his upset victory from last election, while a minority Labour administration propped up by the Greens could lead to policy instability.

  • The news that Shanghai found three COVID-19 cases outside of quarantine facilities, snapping a six-day run of no community transmission, applied pressure to offshore yuan. Spot USD/CNH remains ~120 pips above neutral levels, after the PBOC trimmed its 5-Year LPR by a record amount of 15ppt, while keeping the 1-Year LPR unchanged (confusion in headlines sparked some short-lived volatility).
  • NZD/USD is on track to register its first weekly gain after seven consecutive weeks of losses. All key data ahead of next Wednesday's RBNZ monetary policy meeting have been released, leaving market participants to digest available signals.
  • There was good demand for CHF, which sits atop the G10 pile. Regional reaction to remarks from SNB Pres Jordan may have facilitated the move, after the official flagged a sense of concern with price pressures.
  • The greenback traded on a firmer footing, aided by an uptick in U.S. Tsy yields.
  • The yen firmed even as it is a Gotobi Day today.
  • UK retail sales & EZ consumer confidence will take focus later in the day. Comments are due from ECB's Muller, Kazaks, Simkus, Centeno, de Cos as well as BoE's Pill.
267 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The Aussie dollar went offered, lagging better risk sentiment, amid positioning ahead of this weekend's federal election. This week's opinion polls have shown the race tightening, with the prospect of a hung parliament likely putting some participants on the defensive. On the eve of the election day, the opposition Labour party remains ahead of the ruling Liberal/National Coalition, but PM Morrison could still replicate his upset victory from last election, while a minority Labour administration propped up by the Greens could lead to policy instability.

  • The news that Shanghai found three COVID-19 cases outside of quarantine facilities, snapping a six-day run of no community transmission, applied pressure to offshore yuan. Spot USD/CNH remains ~120 pips above neutral levels, after the PBOC trimmed its 5-Year LPR by a record amount of 15ppt, while keeping the 1-Year LPR unchanged (confusion in headlines sparked some short-lived volatility).
  • NZD/USD is on track to register its first weekly gain after seven consecutive weeks of losses. All key data ahead of next Wednesday's RBNZ monetary policy meeting have been released, leaving market participants to digest available signals.
  • There was good demand for CHF, which sits atop the G10 pile. Regional reaction to remarks from SNB Pres Jordan may have facilitated the move, after the official flagged a sense of concern with price pressures.
  • The greenback traded on a firmer footing, aided by an uptick in U.S. Tsy yields.
  • The yen firmed even as it is a Gotobi Day today.
  • UK retail sales & EZ consumer confidence will take focus later in the day. Comments are due from ECB's Muller, Kazaks, Simkus, Centeno, de Cos as well as BoE's Pill.