Aussie Loses Shine On Lead From Commodity Markets

The Aussie went offered across the board in a headline-light session, as iron ore and natural gas prices fell. The currency shrugged off comments from Australian Treasurer Frydenberg, who said he expects GDP contraction to be 3.0% Y/Y or more in Q3, adding that the economy should "bounce back strongly" thereafter. Frydenberg poured cold water on jitters surrounding Australia's tense relationship with China, noting that local exporters have identified alternative target markets.

• The yuan caught a bid despite a firmer than expected PBOC fix. The HKMA said that China will sell an additional CNH4.5bn of its 2.41% 2023 bonds and an additional CNH1.5bn of its 3.60% 2028 bonds in Hong Kong on Oct 20. USD/CNH faltered in the lead up to the release of China's trade data and extended losses as stronger than forecast exports growth underpinned a beat in trade surplus.
• The DXY slid in tandem with spot USD/CNH. The greenback lagged behind all of its G10 peers save for AUD. Its weakness allowed USD/JPY to extend its pullback from a three-year high.
• The minutes from FOMC's September monetary policy meeting and U.S. CPI headline the global economic docket today. Final German CPI & UK industrial output are also due. The speaker slate features BoE's Cunliffe, ECB's Visco & Fed's Brainard.