Free Trial
AUSSIE 3-YEAR TECHS

(Z2) Ebbing Lower

MNI

Coming up in the Asia-Pac session on Friday:

ASIA

Coming up in the Asia-Pac session on Friday:

USDCAD TECHS

Impulsive Rally Extends

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

Export Worry Leaves BofA Wary

ASIA FX

Bank of America note that “the depreciation in Asia FX until mid-July was precisely in line with its external drivers (U.S. rates, risk, oil & China) - but since then, the muted recovery in Asia FX has lagged what the reversal in these drivers would imply. Normally, we would interpret this as a constructive signal for Asia FX, but we are reluctant to do so - partly because we are not convinced that the bottom in risk, highs in oil and Fed hawkishness are behind us. But we are also apprehensive about a deteriorating export cycle as Western economies slow in H2. Asia export data surprises have unusually persisted at positive levels for over two years but could turn negative in coming months, adding to the pressure on Asia FX.”

130 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.

Bank of America note that “the depreciation in Asia FX until mid-July was precisely in line with its external drivers (U.S. rates, risk, oil & China) - but since then, the muted recovery in Asia FX has lagged what the reversal in these drivers would imply. Normally, we would interpret this as a constructive signal for Asia FX, but we are reluctant to do so - partly because we are not convinced that the bottom in risk, highs in oil and Fed hawkishness are behind us. But we are also apprehensive about a deteriorating export cycle as Western economies slow in H2. Asia export data surprises have unusually persisted at positive levels for over two years but could turn negative in coming months, adding to the pressure on Asia FX.”