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Free AccessRisk-off pervades -AUD and NZD diverged.......>
FOREX: Risk-off pervades
-AUD and NZD diverged markedly overnight, with AUD the poorest performer in G10
and NZD one of the strongest. This resulted in AUD/NZD touching the lowest
levels since April in early trade, with AUD weakness coming alongside waning
risk appetite and commentary from RBA's Lowe, who stated further concerns over
the credit supply for small businesses in the Australian economy.
-The marked dip in US equities yesterday fed into European trade this morning
and underpinned gains for the CHF and JPY, which sit alongside the NZD as the
strongest performers so far today. USD/JPY touched Y112.32 in European trade,
the lowest levels of the month so far.
-Material data and newsflow have been few and far between Tuesday, with markets
appearing to remain happy to sell EUR/USD rallies, which dragged the pair from
multi-day highs of $1.1310 this morning.
-UK CBI trends data and US housing starts/building permits are due, but focus is
likely to remain on the further gyrations in US equity markets, with US futures
indicating another lower open on Wall Street today.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.