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FOREX: Risk-Sensitive Currencies Outperform On China Stimulus News

FOREX

Risk-sensitive currencies outperformed today driven by China’s announcement of numerous stimulus measures and support for the equity and bond markets, which also boosted share and commodity prices. The USD index is little changed.

  • AUDUSD is up 0.3% to 0.6860 after a high of 0.6861 reached on the RBA decision. It fell to 0.6826 before the PBoC announcement but has traded above key resistance at 0.6824 through the session, which if sustained will confirm the resumption of the bull cycle.
  • The RBA left rates at 4.35%, as expected, and remains “vigilant” to upside inflation risks. There was some volatility around the announcement with AUDUSD slightly higher.
  • NOK and CAD are the other outperformers with USDNOK down 0.3% to 10.461 and USDCAD -0.2% to 1.3516.
  • Kiwi has not performed as well with NZDUSD little changed at 0.6270 but AUDNZD is up 0.3% to 1.0939. The pair reached 1.0936 following the China news.
  • USDJPY has range traded through the session and is currently up 0.2% to 143.81 after a high of 143.91 followed by falling to a low of 143.38 when PBoC stimulus was announced.
  • The euro and pound are slightly stronger against the greenback at 1.1116 and 1.3356 respectively. The ECB’s Lagarde said that the inflation fight was not yet quite won.
  • Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo.
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Risk-sensitive currencies outperformed today driven by China’s announcement of numerous stimulus measures and support for the equity and bond markets, which also boosted share and commodity prices. The USD index is little changed.

  • AUDUSD is up 0.3% to 0.6860 after a high of 0.6861 reached on the RBA decision. It fell to 0.6826 before the PBoC announcement but has traded above key resistance at 0.6824 through the session, which if sustained will confirm the resumption of the bull cycle.
  • The RBA left rates at 4.35%, as expected, and remains “vigilant” to upside inflation risks. There was some volatility around the announcement with AUDUSD slightly higher.
  • NOK and CAD are the other outperformers with USDNOK down 0.3% to 10.461 and USDCAD -0.2% to 1.3516.
  • Kiwi has not performed as well with NZDUSD little changed at 0.6270 but AUDNZD is up 0.3% to 1.0939. The pair reached 1.0936 following the China news.
  • USDJPY has range traded through the session and is currently up 0.2% to 143.81 after a high of 143.91 followed by falling to a low of 143.38 when PBoC stimulus was announced.
  • The euro and pound are slightly stronger against the greenback at 1.1116 and 1.3356 respectively. The ECB’s Lagarde said that the inflation fight was not yet quite won.
  • Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo.