Free Trial

Risk-Sensitive AUD and NZD Outperform

FOREX

Risk-averse currencies struggled today with risk-sensitive Aussie and kiwi outperforming in the G10 with most equity markets higher on the day but commodities weaker and geopolitical worries at the fore. USDJPY rose a further 0.3% to 147.70, close to its intraday high. The BBDXY USD index is off its intraday low to be little changed.

  • NZDUSD has been one of today’s biggest movers up 0.3% to 0.6036 ahead of Wednesday’s RBNZ meeting. Views are split as to whether there will be a cut and the market has over a 60% chance priced in.
  • AUDUSD has trended higher since data showing a pickup in consumer confidence and elevated wage inflation. The pair is now up 0.2% to 0.6596, struggling to break above 66c. AUDNZD is down 0.1% to 1.0929 but has been range trading.
  • Like the yen, the Swiss franc has weakened while USDEUR is slightly stronger leaving EURCHF up 0.3% at 0.9487. USDGBP is moderately higher at 1.2777.
  • Today’s USDCNY fixing was slightly up on yesterday’s at 7.1458, USDCNH trended higher thereafter to a peak of 7.1831 but has come back to be little changed today at 7.1788.
  • Asian currencies have been quiet during Tuesday’s session with most currencies flat on the day. IDR and PHP were moderately weaker off 0.3% and 0.2% respectively. INR approaching 84.00 following weaker-than-expected CPI with some analysts now moving to forecast a rate cut.
  • Later the Fed’s Bostic speaks on the economy and US July PPI and small business confidence print. There’s also UK labour market data and euro area August ZEW.

To read the full story

Close

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.