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FOREX: Safe Havens Underperform. A$ Buoyed By Iron Ore Bounce

FOREX
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Early G10 FX trends are skewed against the safe havens. Broader USD indices are close to unchanged, as broader cross trends play out. The BBDXY last near 1219.1. 

  • Yen is off around 0.40% at this stage, the pair last near 142.80/85 (earlier highs were at 142.95). We are still well off intra-session highs from Friday near 146.50 (which came prior to the Ishiba LDP victory). CHF is off by a little over 0.10%.
  • Japan equity futures are still sharply lower, but also up from intra-session lows on Friday, which is likely curbing yen demand at the margins. US equity futures opened softer but are now back in positive territory.    
  • Also aiding broader risk sentiment is weekend news around easing China housing curbs, with major cities Guangzho, Shanghai and Shenzen all making announcements. (See this BBG link)
  • This is pushing iron ore sharply higher, the SGX benchmark contract up over 10% to nearly $113/ton. This is likely helping AUD/USD, with the pair up to 0.6920 around 0.25% firmer for the session. AUD/JPY is back to 98.75 (against recent lows near 98.00).
  • NZD/USD is trailing the A$ slightly, but is still up, last near 0.6350/55.
  • On the data front, the NZ ANZ business survey measures showed further improvement, activity outlook to 45.3 and confidence to 60.9.
  • In Japan, Aug IP fell more than forecast down -3.3% m/m (forecast was -0.5%), while retail sales were slightly stronger (+2.8% y/y, versus a +2.6% forecast).
  • Still to come is the China PMIs and Australian private sector credit data. 
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Early G10 FX trends are skewed against the safe havens. Broader USD indices are close to unchanged, as broader cross trends play out. The BBDXY last near 1219.1. 

  • Yen is off around 0.40% at this stage, the pair last near 142.80/85 (earlier highs were at 142.95). We are still well off intra-session highs from Friday near 146.50 (which came prior to the Ishiba LDP victory). CHF is off by a little over 0.10%.
  • Japan equity futures are still sharply lower, but also up from intra-session lows on Friday, which is likely curbing yen demand at the margins. US equity futures opened softer but are now back in positive territory.    
  • Also aiding broader risk sentiment is weekend news around easing China housing curbs, with major cities Guangzho, Shanghai and Shenzen all making announcements. (See this BBG link)
  • This is pushing iron ore sharply higher, the SGX benchmark contract up over 10% to nearly $113/ton. This is likely helping AUD/USD, with the pair up to 0.6920 around 0.25% firmer for the session. AUD/JPY is back to 98.75 (against recent lows near 98.00).
  • NZD/USD is trailing the A$ slightly, but is still up, last near 0.6350/55.
  • On the data front, the NZ ANZ business survey measures showed further improvement, activity outlook to 45.3 and confidence to 60.9.
  • In Japan, Aug IP fell more than forecast down -3.3% m/m (forecast was -0.5%), while retail sales were slightly stronger (+2.8% y/y, versus a +2.6% forecast).
  • Still to come is the China PMIs and Australian private sector credit data.