JPY Dented By Election Outcome, AUD Softens Ahead Of RBA Decision

The electoral victory of Japan's ruling LDP was more decisive than anticipated, raising the prospect of greater political stability and a smooth passage of promised fiscal stimulus measures. The yen went offered in early trade, as the Nikkei 225 moved in the opposite direction. USD/JPY topped out just shy of last week's peak.

• Spot USD/CNH has stuck to a fairly narrow range, even as China's official PMI data indicated that contraction in the local m'fing sector unexpectedly accelerated a tad. The central USD/CNY mid-point was set at CNY6.4192 today, 11 pips above sell-side estimate.
• Some modest selling pressure has hit the AUD as participants have been preparing for tomorrow's monetary policy decision from the RBA. AUD/USD implied volatilities have crept higher, with 1-week tenor showing at its best levels since March.
• Global m'fing PMI readings abound today, with China's Caixin print due to hit the wires in short order.