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JPY Tops G10 FX, While Antipodeans Suffer On China COVID Protest Stories

FOREX

Early Asia-Pac FX trade has been dominated by relative sensitivities to broader risk appetite & China, given the focus on the previously alluded to scenes of social unrest re: COVID restrictions witnessed across some of the major Chinese cities.

  • That leaves the USD firmer vs. all G10 counterparts, excluding JPY, with the risk-negative backdrop and Tokyo fix-related demand supporting the JPY.
  • AUD & NZD find themselves at the foot of the G10 FX performance table on the aforementioned dynamic, with softer than expected domestic retail sales data also applying some pressure to the former.
  • USD/CNH gapped higher on the previously outlined headline flow, with the cross last dealing over 500 pips higher at typing. Participants have looked through a slightly stronger than expected CNY mid-point fixing.
  • E-minis continue to pull lower, while the Hang Seng shows 3.2% lower in early Monday trade, reinforcing the above dynamics.
  • Looking ahead, headline flow surrounding the COVID situation in China and the proposed price cap on Russian crude oil will garner attention. The Dallas Fed m’fing index headlines a limited global economic docket on Monday, with comments from a raft of ECB speakers, headlined by President Lagarde, as well as Fedspeak from Williams & Bullard, also slated.
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Early Asia-Pac FX trade has been dominated by relative sensitivities to broader risk appetite & China, given the focus on the previously alluded to scenes of social unrest re: COVID restrictions witnessed across some of the major Chinese cities.

  • That leaves the USD firmer vs. all G10 counterparts, excluding JPY, with the risk-negative backdrop and Tokyo fix-related demand supporting the JPY.
  • AUD & NZD find themselves at the foot of the G10 FX performance table on the aforementioned dynamic, with softer than expected domestic retail sales data also applying some pressure to the former.
  • USD/CNH gapped higher on the previously outlined headline flow, with the cross last dealing over 500 pips higher at typing. Participants have looked through a slightly stronger than expected CNY mid-point fixing.
  • E-minis continue to pull lower, while the Hang Seng shows 3.2% lower in early Monday trade, reinforcing the above dynamics.
  • Looking ahead, headline flow surrounding the COVID situation in China and the proposed price cap on Russian crude oil will garner attention. The Dallas Fed m’fing index headlines a limited global economic docket on Monday, with comments from a raft of ECB speakers, headlined by President Lagarde, as well as Fedspeak from Williams & Bullard, also slated.