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Light Defensive Flows Emerge

FOREX

Weakness in e-minis has resulted in some very light risk-off flows across G10 FX space, with widely watched risk barometer AUD/JPY falling past yesterday's lows and with EUR/JPY breaking below its 50-DMA for the first time since May. The yen outperforms in the basket and the DXY has also firmed up, albeit most G10 crosses stick to relatively tight ranges.

  • NZD has ignored the release of an above-forecast current account surplus and awaits the FinMin Robertson's Pre-Election Economic and Fiscal Update.
  • USD/CNH has slowly edged higher, but remains comfortably within yesterday's range.
  • FOMC monetary policy decision from headlines today's docket, with comments from ECB's Lane, de Cos, Holzmann and Visco also due. Main data releases include UK and Canadian inflation data, U.S. retail sales and EZ trade balance.

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