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FOREX: Risk Currencies Still Lower Amid Mixed China/HK Equity Trends

FOREX
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The USD BBDXY index sits a touch higher, last above 1244.00, up 0.10%.  We were near 1245 earlier in the session. Much of the focus is on China/HK equities following the weekend MOF fiscal briefing. Most onshore markets are tracking higher at this stage, the CSI 300 and Chinext up modestly. Hong Kong markets have been more volatile, but are still weaker for the session (HSI last off around 0.90%). 

  • Positive Goldman Sachs revisions for China 2024 and 2025 GDP forecasts is likely helping at the margin.  
  • This has helped stabilize FX sentiment for risk sensitive currencies, with AUD and NZD still down around 0.25%-0.30%, but up from earlier lows. USD/CNH is holding higher, but hasn't extended losses beyond 7.0900 at this stage. Spot USD/CNY gapped higher at the open, but found selling interest above 7.0800. The won has weakened by around 0.30% as well, close to recent lows for this pair.
  • Yen is close to flat, so some outperformance, last near 149.20.
  • Commodities are mixed, copper still weaker, but iron ore is holding up, last near $107/ton. Oil is still holding down for the session.
  • US Tsy futures are holding slightly lower, but a reminder there is no cash trading today with Japan markets out. 
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The USD BBDXY index sits a touch higher, last above 1244.00, up 0.10%.  We were near 1245 earlier in the session. Much of the focus is on China/HK equities following the weekend MOF fiscal briefing. Most onshore markets are tracking higher at this stage, the CSI 300 and Chinext up modestly. Hong Kong markets have been more volatile, but are still weaker for the session (HSI last off around 0.90%). 

  • Positive Goldman Sachs revisions for China 2024 and 2025 GDP forecasts is likely helping at the margin.  
  • This has helped stabilize FX sentiment for risk sensitive currencies, with AUD and NZD still down around 0.25%-0.30%, but up from earlier lows. USD/CNH is holding higher, but hasn't extended losses beyond 7.0900 at this stage. Spot USD/CNY gapped higher at the open, but found selling interest above 7.0800. The won has weakened by around 0.30% as well, close to recent lows for this pair.
  • Yen is close to flat, so some outperformance, last near 149.20.
  • Commodities are mixed, copper still weaker, but iron ore is holding up, last near $107/ton. Oil is still holding down for the session.
  • US Tsy futures are holding slightly lower, but a reminder there is no cash trading today with Japan markets out.