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FOREX: AUD Undermined by Soft Iron Ore, China Presser

FOREX
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  • A press conference held by China's NDRC appeared to disappoint markets in stopping short of material commitments to considerable stimulus - helping drive risk sentiment lower via soft equities in Asia-Pac trade - although the impact moderated sharply into the European open. Nonetheless, a softer view of China's growth push has worked against AUD, undermined by the softer iron ore price, keeping the EUR/AUD bounce in tact as price shows above the 1.6344 100-dma.
  • The USD was offered through the European open, aided by a break above the overnight low in USD/JPY and the NY high in EUR/USD - at 147.51 and 1.0987 respectively.
  • ECBspeak has been thick and fast across the morning, with both Vasle and Nagel talking up the openness of the October meeting for the next rate cut step - the firm consensus for markets. This has kept EUR/GBP pressured toward recent lows - but further downside conviction may need to emerge outside of the ECB monpol channel.
  • Fed's Kugler made her first post-NFP comments on FOMC policy today, sticking to a dovish theme in flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market, affirming that Kugler is likely to opt for further rate cuts ahead "if inflation recedes".
  • Focus for the duration of Tuesday trade rests on US/Canadian trade balance data as well as appearances from ECB's Centeno & Nagel and Fed's Bostic & Collins. 
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  • A press conference held by China's NDRC appeared to disappoint markets in stopping short of material commitments to considerable stimulus - helping drive risk sentiment lower via soft equities in Asia-Pac trade - although the impact moderated sharply into the European open. Nonetheless, a softer view of China's growth push has worked against AUD, undermined by the softer iron ore price, keeping the EUR/AUD bounce in tact as price shows above the 1.6344 100-dma.
  • The USD was offered through the European open, aided by a break above the overnight low in USD/JPY and the NY high in EUR/USD - at 147.51 and 1.0987 respectively.
  • ECBspeak has been thick and fast across the morning, with both Vasle and Nagel talking up the openness of the October meeting for the next rate cut step - the firm consensus for markets. This has kept EUR/GBP pressured toward recent lows - but further downside conviction may need to emerge outside of the ECB monpol channel.
  • Fed's Kugler made her first post-NFP comments on FOMC policy today, sticking to a dovish theme in flagging the "serious" reduction in inflation as well as citing several metrics that point toward a cooling labour market, affirming that Kugler is likely to opt for further rate cuts ahead "if inflation recedes".
  • Focus for the duration of Tuesday trade rests on US/Canadian trade balance data as well as appearances from ECB's Centeno & Nagel and Fed's Bostic & Collins.