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FOREX: CNH Weakness Weighs on A$, NZD, JPY Unchanged

FOREX
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The USD has remained on the front foot for the first part of Tuesday trade, although overall moves are very modest at this stage. The USD BBDXY index sits around fresh highs back to mid August, last near 1248.1. 

  • Yuan weakness has been a focus point, with USD/CNH pushing back above 7.1250, weaker by around 0.45% in CNH terms. Onshore equities (along with the HK HSI) are down at the lunchtime break (CSI 300 off 0.47%). Onshore speculation continues around stimulus size and needs.
  • This has likely weighed on AUD and NZD at the margins. AUD/USD last near 0.6710/15, off close to 0.20%, while NZD is down by a similar amount to 0.6080/85. RBNZ Deputy Governor Christian Hawkesby commented that the OCR “is headed more toward neutral”. Adding that the pace of decline “is really around how things evolve from here” in terms of what information and data come up.
  • Recent lows in AUD are close to 0.6700, for NZD is it at 0.6053.
  • Oil is weaker as Israel will reportedly not strike Iran nuclear or energy facilities (WTI down 3%).
  • US equity futures sit slightly higher. We saw an earlier dip on headlines the US authorities may curb Nvidia overseas sales more. US yields have returned from yesterday's holiday, with back end yields slightly lower, while the front end is steady.
  • USD/JPY has been quite steady, the pair little changed, last near 149.70.
  • Looking ahead, The Fed’s Daly and Kugler appear and US October Empire manufacturing and September NY Fed inflation expectations as well as UK employment/wages, ECB bank lending survey, euro area October ZEW & August IP, and September Canadian CPI print.  
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The USD has remained on the front foot for the first part of Tuesday trade, although overall moves are very modest at this stage. The USD BBDXY index sits around fresh highs back to mid August, last near 1248.1. 

  • Yuan weakness has been a focus point, with USD/CNH pushing back above 7.1250, weaker by around 0.45% in CNH terms. Onshore equities (along with the HK HSI) are down at the lunchtime break (CSI 300 off 0.47%). Onshore speculation continues around stimulus size and needs.
  • This has likely weighed on AUD and NZD at the margins. AUD/USD last near 0.6710/15, off close to 0.20%, while NZD is down by a similar amount to 0.6080/85. RBNZ Deputy Governor Christian Hawkesby commented that the OCR “is headed more toward neutral”. Adding that the pace of decline “is really around how things evolve from here” in terms of what information and data come up.
  • Recent lows in AUD are close to 0.6700, for NZD is it at 0.6053.
  • Oil is weaker as Israel will reportedly not strike Iran nuclear or energy facilities (WTI down 3%).
  • US equity futures sit slightly higher. We saw an earlier dip on headlines the US authorities may curb Nvidia overseas sales more. US yields have returned from yesterday's holiday, with back end yields slightly lower, while the front end is steady.
  • USD/JPY has been quite steady, the pair little changed, last near 149.70.
  • Looking ahead, The Fed’s Daly and Kugler appear and US October Empire manufacturing and September NY Fed inflation expectations as well as UK employment/wages, ECB bank lending survey, euro area October ZEW & August IP, and September Canadian CPI print.