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Lockdowns Temper AUD Upside

FOREX

A fairly subdued start to trade on Tuesday in a broadly benign risk environment. NZD is top of the G10 pile so far after falling on Monday, NZD/USD up 5 pips thanks to some speculation around a hawkish RBNZ statement at the rate announcement tomorrow – the four biggest banks in New Zealand now expect the RBNZ to start hiking rates in November.

  • AUD/USD is up 2 pips, gains tempered by worries around the coronavirus outbreak in Sydney. Data showed consumer confidence rose 2.0% to 110.0, the gain coming despite the announcement of a third week of lockdown in Sydney.
  • USD/JPY is down 3 pips, final industrial output headlines the local docket today, with BOJ MonPol decision and outlook report coming up Friday.
  • Offshore yuan is stronger, markets look ahead to Chinese trade data due later in the session. Expectations are for exports and imports to moderate slightly off a high base though leading indicators suggest robust momentum in China's export industry.

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