MNI BRIEF: Japan Ruling LDP Coalition Loses Majority: Press

MNI INTERVIEW2: Trump Stagflationary For Eurozone-ECB's Wunsch

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

MNI China Daily Summary: Friday, October 25

MNI BRIEF: China's Next NPC Meeting Scheduled For Nov 4 to 8

MNI: PBOC Net Injects CNY184.2 Bln via OMO Friday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

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

FOREX: AUD & NZD Eyeing Weekly Lows, Underperforming Yen

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets

The USD BBDXY index is a touch higher, last near 1258.3. Most weakness today has been focused in AUD and NZD. Yen is marginally higher, but is within Thursday ranges. 

  • The AUD and NZD weakness doesn't appear to have had a direct catalyst. Broader technical trends remain weaker for both currencies. AUD/USD is very close to key Sep lows, last near 0.6620. NZD/USD is last at 0.5990, challenging week to date lows.
  • Onshore China and HK equities are higher, up around 1% at this stage. Stimulus optimism and better housing data is aiding sentiment. Iron ore is higher, up 1.8%, but this is not benefiting the AUD so far.
  • USD/JPY has been somewhat volatile, but within recent ranges, we were last 151.70. We had fresh FX rhetoric from the Chief FX Diplomat, but yen strength was limited. The Tokyo CPI for Oct showed firmer core price trends relative to expectations. Services prices rose firmly in the month. However, with BoJ Governor Ueda hinting at no changes next week, this may be limiting the data's impact.
  • We also have the Japan lower house elections this weekend. Uncertainty rests over whether the ruling LDP will lose its outright majority. A broader coalition in Japan may temper the BoJ normalisation process, albeit at the margins.
  • Looking ahead, we have US durable goods orders and the U. Of Mich sentiment final read as the main data points. The Fed's Collins also speaks. 

 

236 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 USD BBDXY index is a touch higher, last near 1258.3. Most weakness today has been focused in AUD and NZD. Yen is marginally higher, but is within Thursday ranges. 

  • The AUD and NZD weakness doesn't appear to have had a direct catalyst. Broader technical trends remain weaker for both currencies. AUD/USD is very close to key Sep lows, last near 0.6620. NZD/USD is last at 0.5990, challenging week to date lows.
  • Onshore China and HK equities are higher, up around 1% at this stage. Stimulus optimism and better housing data is aiding sentiment. Iron ore is higher, up 1.8%, but this is not benefiting the AUD so far.
  • USD/JPY has been somewhat volatile, but within recent ranges, we were last 151.70. We had fresh FX rhetoric from the Chief FX Diplomat, but yen strength was limited. The Tokyo CPI for Oct showed firmer core price trends relative to expectations. Services prices rose firmly in the month. However, with BoJ Governor Ueda hinting at no changes next week, this may be limiting the data's impact.
  • We also have the Japan lower house elections this weekend. Uncertainty rests over whether the ruling LDP will lose its outright majority. A broader coalition in Japan may temper the BoJ normalisation process, albeit at the margins.
  • Looking ahead, we have US durable goods orders and the U. Of Mich sentiment final read as the main data points. The Fed's Collins also speaks.