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Price Swings Retracing

FOREX

A quiet start to the Asia-Pac session on Friday, after some wild price swings earlier in the week. The greenback has pushed slightly higher, reversing some of the post-FOMC weakness.

  • AUD and NZD under pressure, AUD seeing extra downside as retail sales data unexpectedly falls below estimates.
  • USD/JPY took a hit Thursday as the Nikkei reported that the BoJ could widen its target yield band to +/-0.25% & remove its Y6tn ETF purchase target, but resultant weakness more than dissipated into the London morning, Data today has showed CPI falling 0.4% in February, in line with estimates. USD/JPY higher on the session as USD sees a bid.
  • PBOC fixed USD/CNY at 6.5098, just 1 pip above sell side estimates. Offshore yuan is weaker, USD/CNH breaking through yesterday's high, last at 6.5164. Early signs from the US-China summit are not encouraging with both sides choosing to apportion blame in opening remarks.
  • GBP/USD coming under some pressure too, approaching yesterday's low at 1.3898, despite GfK consumer confidence rising to -16, the highest since the start of lockdown.

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