Risk-Sensitive AUD and NZD Outperform

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.