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FOREX: BBDXY Tests Yesterday's High, Aussie Outperforms, JPY Struggles

FOREX

The BBDXY tests yesterday’s highs. Late Monday saw the USD rally as Powell stressed that the Fed planned to lower interest rates “over time”.

  • Asia-Pac liquidity was hampered by holidays in China, Hong Kong & Korea.
  • AUD outperforms G10 peers following firmer-than-expected retail sales data. AUD last 0.6925, bulls have failed to test yesterday’s high at 0.6942 thus far.
  • The JPY loses ground against all G10 peers alongside a ~2% rally in the Nikkei. USD/JPY registers fresh session highs of 144.46 in recent trade. First meaningful resistance not seen until the 50-day EMA (146.29).
  • NZD/USD has eased to 0.6335. A soft NZIER QSBO weighed on the kiwi, with BNZ subsequently calling for a 50bp RBNZ cut later this month.
  • The U.S. ISM survey & JOLTS jobs data, European HICP & manufacturing PMIs (final for the largest economies) are all due today.
  • We will also get central bank rhetoric from Fed’s Barkin & Bostic, ECB’s Schnabel, de Guindos, Nagel & Rehn and SNB's Schlegel.
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The BBDXY tests yesterday’s highs. Late Monday saw the USD rally as Powell stressed that the Fed planned to lower interest rates “over time”.

  • Asia-Pac liquidity was hampered by holidays in China, Hong Kong & Korea.
  • AUD outperforms G10 peers following firmer-than-expected retail sales data. AUD last 0.6925, bulls have failed to test yesterday’s high at 0.6942 thus far.
  • The JPY loses ground against all G10 peers alongside a ~2% rally in the Nikkei. USD/JPY registers fresh session highs of 144.46 in recent trade. First meaningful resistance not seen until the 50-day EMA (146.29).
  • NZD/USD has eased to 0.6335. A soft NZIER QSBO weighed on the kiwi, with BNZ subsequently calling for a 50bp RBNZ cut later this month.
  • The U.S. ISM survey & JOLTS jobs data, European HICP & manufacturing PMIs (final for the largest economies) are all due today.
  • We will also get central bank rhetoric from Fed’s Barkin & Bostic, ECB’s Schnabel, de Guindos, Nagel & Rehn and SNB's Schlegel.