MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: Antipodean FX Outperforms Amid Further China Equity Surge

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets

The top performers in the G10 FX space today have been AUD and NZD, which are both up close to 0.45% firmer versus the USD. Further strong China equity gains, coupled with higher metal prices (particularly for iron ore) have been key drivers. This follows the weekend news of easing property restrictions in 3 large China cities. Yen and CHF are weaker, but away from worst levels. 

  • The BBDXY USD index sits little changed last near 1219.10/15, with all of today's focus in the crosses. US equity futures are close to flat, while US yields are a touch higher.
  • USD/JPY got to highs of 142.95, but sits back near 142.25 in latest dealings, only modestly weaker in yen terms.
  • New PM Ishiba is expected to call an election for Oct 27th, per onshore media sources. Local equities are sharply lower, with policy continuity seen from Ishiba in the near term (and likely continued BoJ normalization).
  • Japan IP data was softer, but is expected to improve from the auto side for the next print. Retail sales were close to expectations and in positive territory.
  • AUD/USD was last near the 0.6930/35 level, so just short of recent highs, close to 0.6940. Bulls will target a move towards 0.7000, as China ramps up efforts to boost the economy/property sector. Iron ore has surged higher (last near $112/ton, fresh multi month highs), in line with surging China property equity gains.
  • NZD/USD is around 0.6370, just off highs of 0.6375, which marginally breached late Dec highs from 2023. The ANZ business sentiment readings improved further pointing to an improved outlook, although this is more likely for 2025.
  • Looking ahead, we have the second UK GDP estimate, along with regional EU inflation details (with German figures out). In the US session, we have the MNI Chicago PMI print, as well as hearing from Fed Chair Powell. 
310 words

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.

The top performers in the G10 FX space today have been AUD and NZD, which are both up close to 0.45% firmer versus the USD. Further strong China equity gains, coupled with higher metal prices (particularly for iron ore) have been key drivers. This follows the weekend news of easing property restrictions in 3 large China cities. Yen and CHF are weaker, but away from worst levels. 

  • The BBDXY USD index sits little changed last near 1219.10/15, with all of today's focus in the crosses. US equity futures are close to flat, while US yields are a touch higher.
  • USD/JPY got to highs of 142.95, but sits back near 142.25 in latest dealings, only modestly weaker in yen terms.
  • New PM Ishiba is expected to call an election for Oct 27th, per onshore media sources. Local equities are sharply lower, with policy continuity seen from Ishiba in the near term (and likely continued BoJ normalization).
  • Japan IP data was softer, but is expected to improve from the auto side for the next print. Retail sales were close to expectations and in positive territory.
  • AUD/USD was last near the 0.6930/35 level, so just short of recent highs, close to 0.6940. Bulls will target a move towards 0.7000, as China ramps up efforts to boost the economy/property sector. Iron ore has surged higher (last near $112/ton, fresh multi month highs), in line with surging China property equity gains.
  • NZD/USD is around 0.6370, just off highs of 0.6375, which marginally breached late Dec highs from 2023. The ANZ business sentiment readings improved further pointing to an improved outlook, although this is more likely for 2025.
  • Looking ahead, we have the second UK GDP estimate, along with regional EU inflation details (with German figures out). In the US session, we have the MNI Chicago PMI print, as well as hearing from Fed Chair Powell.