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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
Softer US equity futures and regional equities have pressured risk appetite in Asia. BBDXY is firmer and has erased its 2023 year to date losses.
- AUD/USD is ~0.5% lower, last printing $0.6840/45. The pair has tested short term resistance at $0.6840, yesterday's low, bears next target is $0.6781 38.2% retracement of Oct-Feb downleg. A lack of fresh hawkish surprises from Gov Lowe at a parliamentary committee weighed at the margins. AUD has looked through stronger Iron Ore futures which are up ~0.7% as PBoC pumps record amounts of cash into the economy sparking optimism over the recovery. Other China assets are less positive though, with equities tracking lower (CSI 300 off 0.50%).
- NZD/USD is down ~0.5%, last printing at $0.6220/25. Finance Minister Robertson spoke, noting that there may be initial inflationary pressure from cyclone Gabrielle however the rebuilding may boost H2 GDP. He also said that there is evidence inflation has peaked.
- Yen continues to weaken, USD/JPY is up ~0.6%. US yield momentum continues to point to further upside in the pair. USD/JPY last printed at ¥134.70/80, and is currently testing its 100-Day EMA (¥134.77).
- Broad based USD strength has weighed on CHF, EUR and GBP, which are down ~0.4%.
- Cross asset wise; S&P500 futures are ~0.4% lower and the Hang Seng is down ~0.6%. BBDXY is up ~0.4% and 10 Year US Treasury Yields are ~2bps firmer.
- In Europe today we have PPI from Germany and French CPI. Further out US terms of trade and Fedspeak from Richmond Fed President Barkin and Fed Gov Bowman will cross.
Fig 1: BBDXY Trends - 2023 Losses Erased
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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