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

FOREX
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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.
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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.