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Mild Negative Risk Mood

FOREX

The greenback is holding Wednesday's gains and putting high beta currencies under pressure amid a modicum of negative risk sentiment. There are reports that US President Biden is willing to extend infrastructure talks by up to two weeks.

  • AUD/USD is down around 8 pips, the prospect of a lockdown in Victoria is weighing while losses in the commodity complex yesterday also weigh.
  • NZD/USD is down 5 pips, giving back some of yesterday's RBNZ inspired gains after RBNZ Governor Orr said the bank was still willing to cut rates if needed.
  • USD/JPY is around 5 pips higher, the Nikkei reported that Japan wants to extend employment subsidy programme through the end of July.
  • The yuan is weaker, there was a piece in the Securities Times that said the yuan exchange rate should be decided by the market. Participants look ahead to China's industrial profits data later in the session. Also, US trade representative Tai is expected to hold first talks with China as soon as today.

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