Greenback Rally Pauses, Commodity Currencies Supported

China's return to markets after a five-day break was underwhelming, equities were lower while fixed income was supported by broad risk aversion, the greenback paused a two-day rally while oil prices continued to rise.

• The NOK was the best performer among its G10 peers, supported by the rally in crude which has seen brent over $65/bbl.
• AUD initially rose as high as 0.7770 after labour market data was broadly in-line with estimates but the breakdown showed a lower participation rate and less hours worked, the rate later pared the gains to trade around neutral levels. NZD moved in sympathy with its Antipodean counterpart.
• JPY pairs are slightly weaker after BoJ Gov Kuroda reportedly told PM Suga that a BoJ review is aimed at sustaining monetary easing over a longer period, as opposed to tightening policy.
• An inside day for offshore yuan, USD/CNH has moved slightly higher from opening levels as equity markets sold off. A fairly uneventful yuan fixing, the PBOC fixed USD/CNY at 6.4536, just marginally higher than sell side estimates of 6.4529.