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Greenback Extends Losses In Risk-On Environment

FOREX

Higher e-mini futures have offset any potential impact from negative consumer and business sentiment outturns in Australia, with the three main contracts last 0.3-0.4% better off. The G10 FX space is witnessing light risk-on flows, with the greenback extending overnight losses. The BBDXY index has faltered, testing support from Oct 27 low of 1,314.95.

  • Spot USD/CNH trades slightly lower, holding yesterday's range, as we await the PBOC fix. Note that China's central bank withdrew the appreciation bias from its fixing for the first time since mid-Aug on Monday.
  • Participants remain on the lookout for fresh signals on the future of China's COVID Zero approach, as well as the outcome of U.S. midterm elections.
  • The RBNZ will publish its survey of expectations later today, with 2-year ahead CPI providing the most interest. EZ retail sales and comments from ECB's Nagel & Wunsch, BoE's Pill & Riksbank's Breman will take focus after Asia-Pac hours.

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