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FOREX: USD Ticks Lower, China Asset Sentiment Positive After LPR Cuts

FOREX
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The USD sits slightly weaker in in the first part of Monday trade although outside of JPY, AUD & NZD up around 0.15%, moves have been very modest in the G10 FX space. The USD BBDXY index was last 1251.60, slightly down on end levels from last week. 

  • AUD/USD sits slightly firmer at 0.6715. Earlier we had comments from RBA Deputy Governor Hauser, that the central bank has been surprised by the strength in the labour market. Hauser also stated inflation was too high but the RBA was prepared to act in both directions given so much uncertainty surrounding the outlook.
  • China related asset sentiment has mostly been positive, after banks cut both the 1yr and 5yr LPR by 25bps (consensus had looked for a 20bps cut). China equities are higher at the break, while metal prices have also firmed.
  • NZD/USD has ticked higher, last at 0.6080, but remains very much within recent ranges.
  • USD/JPY is down to 149.25/50, backing away from a test of 150.00 for now. Earlier lows were just under 149.10.
  • In the cross asset space, US equity futures are close to flat, while US yields have also been close to unchanged. Gold prices are higher.
  • Looking ahead, the Fed’s Logan, Kashkari, Schmid and Daly speak and the US leading index for September is released. IMF/World Bank meetings are taking place. US PMIs on Thursday are likely the key data for the week. 
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The USD sits slightly weaker in in the first part of Monday trade although outside of JPY, AUD & NZD up around 0.15%, moves have been very modest in the G10 FX space. The USD BBDXY index was last 1251.60, slightly down on end levels from last week. 

  • AUD/USD sits slightly firmer at 0.6715. Earlier we had comments from RBA Deputy Governor Hauser, that the central bank has been surprised by the strength in the labour market. Hauser also stated inflation was too high but the RBA was prepared to act in both directions given so much uncertainty surrounding the outlook.
  • China related asset sentiment has mostly been positive, after banks cut both the 1yr and 5yr LPR by 25bps (consensus had looked for a 20bps cut). China equities are higher at the break, while metal prices have also firmed.
  • NZD/USD has ticked higher, last at 0.6080, but remains very much within recent ranges.
  • USD/JPY is down to 149.25/50, backing away from a test of 150.00 for now. Earlier lows were just under 149.10.
  • In the cross asset space, US equity futures are close to flat, while US yields have also been close to unchanged. Gold prices are higher.
  • Looking ahead, the Fed’s Logan, Kashkari, Schmid and Daly speak and the US leading index for September is released. IMF/World Bank meetings are taking place. US PMIs on Thursday are likely the key data for the week.