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Italian fiscal matters dominated Asia-Pac.....>

FOREX: Italian fiscal matters dominated Asia-Pac FX trade after the risk averse
tone that it set on Tuesday spilled into early dealing. The JPY was the
outperformer early on, with the USD trading firmer elsewhere, as the Antipodeans
felt the most pressure, with NZD/USD breaching tech support, while the AUD
struggled on the back of a much softer than exp. AU building approvals release.
- That was before Corriere reported that the Italian budget plan seeks to cut
the deficit to 2% of GDP in '21. Prev. rhetoric had pointed to a 2.4%
deficit/GDP ratio over 3 years. The gov't is set to release more details on its
budget plan on Weds. EUR/USD turned bid, stopping short of $1.1600, after
trading at ~$1.1535 pre-report, before easing to $1.1575, while USD/JPY last
deals at Y113.65. AUD/USD registered a fresh high on the story, but failed to
reclaim $0.7200, while NZD/USD struggled to get back to unch. with both resuming
their slide vs. the greenback shortly after the release of the report.
- Global services & composite PMIs, U.S. ADP & ISM non-manufacturing survey
provide the data highlights Wednesday, while a deluge of Fedspeak headlined by
Chair Powell & an address from ECB's Mersch makes up the speaker schedule.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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