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FOREX: A$, NZD Weighed By Weaker Yuan, Yen Firms Modestly

FOREX

AUD and NZD have underperformed, particularly against the yen, as the Tuesday Asia Pac session has unfolded. The break higher in USD/CNH above 7.1500 to fresh multi month highs, has weighed on the antipodeans. 

  • The USD BBDXY index is little changed, last near 1262.50. US equity futures are down a touch, while regional equity markets are mixed. US yields sit down a down, helping yen at the margins.
  • The softness in China and Hong Kong equities has also likely weighed on the AUD.
  • AUD/USD last sits at 0.6565/70 (off 0.25%), fresh multi month lows back to the first half of August. NZD/USD is near 0.5970, down 0.20%. Earlier data showed softer jobs filled for September.
  • Commodity prices in the metals space are also down, copper off 0.6%, iron ore back to $102.45/ton/
  • USD/JPY is back under 153.00, around 0.20% stronger in yen terms. Still, we remain comfortably within Monday's ranges. Better jobless data and further FX jawboning may have helped at the margin, but follow through has been limited.
  • There were reports PM Ishiba is seeking a partial coalition with centrist party DPP (per Yomiuri), but a press conference with the DPP leader played down such prospects.
  • Later US September trade, inventories, JOLT job openings, October consumer & Dallas Fed services confidence and August house prices print, as well as November German consumer confidence and UK September credit data. BoC’s Macklem and Rogers speak.
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AUD and NZD have underperformed, particularly against the yen, as the Tuesday Asia Pac session has unfolded. The break higher in USD/CNH above 7.1500 to fresh multi month highs, has weighed on the antipodeans. 

  • The USD BBDXY index is little changed, last near 1262.50. US equity futures are down a touch, while regional equity markets are mixed. US yields sit down a down, helping yen at the margins.
  • The softness in China and Hong Kong equities has also likely weighed on the AUD.
  • AUD/USD last sits at 0.6565/70 (off 0.25%), fresh multi month lows back to the first half of August. NZD/USD is near 0.5970, down 0.20%. Earlier data showed softer jobs filled for September.
  • Commodity prices in the metals space are also down, copper off 0.6%, iron ore back to $102.45/ton/
  • USD/JPY is back under 153.00, around 0.20% stronger in yen terms. Still, we remain comfortably within Monday's ranges. Better jobless data and further FX jawboning may have helped at the margin, but follow through has been limited.
  • There were reports PM Ishiba is seeking a partial coalition with centrist party DPP (per Yomiuri), but a press conference with the DPP leader played down such prospects.
  • Later US September trade, inventories, JOLT job openings, October consumer & Dallas Fed services confidence and August house prices print, as well as November German consumer confidence and UK September credit data. BoC’s Macklem and Rogers speak.