Chinese Data, Offshore Demand Support NZD

NZD traded on a firmer footing, even as final reading of ANZ Business Confidence was revised slightly lower, with a contact flagging demand from accounts outside of Australia & New Zealand. In-line to above-forecast PMI data out of China likely provided some further support to the kiwi. NZD/USD made an attempt at punching through the neckline of a double top formation completed last week, but failed to hold above there and shed gains as USD regained poise.

• The Trump-Biden debate was widely watched but we didn't learn much from an event dominated by barb-trading between the two candidates, with the sitting president going firmly into attack mode. A CBS poll on winner of the debate put Biden at a 7pp lead over Trump. DXY edged lower in the initial part of the event, but recoiled thereafter.
• JPY lost ground into the last Tokyo fix of the month, quarter and Japanese half-FY and on a Gotobi day. It erased losses through the remainder of the Asia-Pac session, climbing towards the top of the G10 scoreboard.
• A fresh tailwind for USD & JPY came in the second half of the session, as e-minis turned red. The likes of AUD & CAD sold off as a result. Most G10 crosses operated within fairly tight ranges.
• South Korean markets were shut for national holidays, which will continue through the weekend.
• Focus turns to final UK GDP, German unemployment, flash French & Italian CPIs, as well as comments from Fed's Kashkari, Bowman & Bullard, ECB's Lagarde, Lane, Muller, Kazimir & Rehn, BoE's Haldane & Riksbank's Jansson.