Free Trial

Delta Roils Risk In Asia, Oil Weakness Spills Over

FOREX

Risk sentiment soured amid the unfettered spread of the Delta variant across Asia and a negative lead from Friday's NY session. Crude oil prices fell after OPEC+ struck a deal on output boost, applying pressure to commodity-tied FX. The AUD paced declines as NSW Premier tightened and extended social restrictions in the state. AUD/USD sank under the $0.7400 mark and printed a fresh cycle trough, as it tested support from Dec 7, 2020 low of $0.7373. Meanwhile, AUD/NZD attacked its multi-month low of NZ$1.0557, but struggled to pierce that level.

  • Risk aversion generated demand for safe haven currencies, putting the yen atop the G10 scoreboard. PM Suga's approval ratings hit all-time lows as Japan enters the final stretch of its preparations to the Tokyo Olympics with Covid angst looming large. USD/JPY was happy to hold the prior trading day's range.
  • Sterling traded on a slightly softer footing, as participants assessed the risks surrounding today's lifting of Covid-19 restrictions in England.
  • USD/CNH climbed to its highest point in ten days, even as the PBOC fix was marginally stronger than expected by sell-side analysts.
  • We are off to a slow start to the week, with little of note on the global data docket. ECB's Perrazzelli and BoE's Haskel are set to make speeches.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.