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Greenback Extends Post-FOMC Gains In Asia

FOREX

The USD has extended its post-FOMC gains in Asia today, US Tsy Yields have ticked higher and US Equity Futures and regional equities are lower.

  • AUD is the weakest performer in the G-10 space at the margins. AUD/USD is down ~0.6%, Support comes in at $0.6357, low from Sep 6 and bear trigger.
  • Kiwi is also pressured, NZD/USD is down ~0.4%. Early post GDP gains were reversed and NZD/USD sits a touch above the $0.59 handle. Q2 GDP rose 0.9% Q/Q, more than the expected 0.4%, the prior read was revised higher to 0.0% Q/Q showing that the economy wasn't in recession.
  • The Yen erased early losses and deals flat, Japan's Matsuno stated that it's important for FX moves to be stable and reflect fundamentals.
  • Elsewhere in G-10; GBP has been pressured printing its lowest level since early April. Losses have been pared a touch and GBP/USD sits down ~0.2%.
  • Cross asset wise; BBDXY is up ~0.2% and 10 Year US Tsy Yields are ~2bps firmer. E-minis are ~0.3% lower, the Hang Seng is down ~1%.
  • The latest monetary policy decision from the BOE provides the highlight in Europe today.

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