Narrow Ranges In Asia

There have been narrow ranges across G-10 FX in Asia today, as moves have had little follow through. The USD firmed off early session lows after China held the 5-Year LPR steady at 4.20%, a cut of 15bps had been expected. The 1-Year LPR was cut 10 bps when a cut of 15bps was expected.

• Kiwi is the weakest performer in the G-10 space at the margins. Pressure was seen on NZD after the Chinese LPR decisions however support came in ahead of YTD lows and losses were pared.
• AUD/USD is holding above the $0.64 handle dealing in a narrow range for the most part on Monday. Technically the trend remains bearish, support comes in at $0.6365 Aug 17 low and $0.6285 low from Nov 4 2022. Resistance is at $0.6480, high from Aug 16.
• Yen is little changed from opening levels, moves have had little follow through in today's Asian session. The uptrend in USD/JPY remains intact, resistance is at ¥146.56 (high from Aug 17) and ¥146.93 (8 Nov 22 high). Support comes in at low from Aug 18 ¥144.93.
• Elsewhere in G-10 EUR and GBP are marginally firmer
• Cross asset wise; BBDXY is marginally firmer and 10 Yr US Tsy Yields are up ~2bps.
• July PPI from Germany headlines an otherwise thin docket on Monday.