October 29, 2024 09:30 GMT
FOREX: AUD Underperformance Results in New Pullback Low
FOREX
- AUD is underperforming broader G10, helping AUD/USD plumb a new pullback low of 0.6559 in Asia-Pac trade. This puts the pair again at the lowest level since early August, although the price has stabilised ahead of the NY crossover.
- Headline risk has been few and far between so far Tuesday, with attention fixed on near-term risk events in the UK (Wednesday's Budget) and the US (Friday's payrolls, next week's election), however speculation around a Chinese fiscal package remains a sentiment driver. Reports out this morning suggest a package of CNY 10trl is being prepared - and would include proceeds to address debt risk (CNY 6trl) and for acquiring local land (CNY 4trl). The package could be larger in the event of a Trump victory, according to the report.
- EUR trades well for a second session, with EUR/USD testing the weekly high in early Tuesday trade. Nonetheless, the pair remains well within range of recent lows, with slippage through 1.0800 likely to again switch focus to 1.0761 and below.
- Datapoints remain few and far between Tuesday, with trade balance stats for September and the October consumer confidence print the only releases of note. The Fed remain inside their pre-decision media blackout period, leaving the only speakers of note today as BoC's Macklem and Rogers - who address lawmakers but are likely to stick to their communique from last week's rate decision, at which the Bank cut rates by 50bps.
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