Risk Sensitive Currencies Benefit From Softer US$ As Equities Rally

The USD is 0.1% lower again during APAC trading after weakening 0.4% on Wednesday after a softer ISM services print and Fed Chair Powell saying rates will be cut sometime this year. Equities have also rallied across the region which has supported risk-sensitive currencies such as AUD, NZD and NOK.

• After rising 0.7% on Wednesday, AUDUSD is up another 0.3% today to 0.6586, close to the intraday high. It has looked through softer iron ore prices and contracting building approval data.
• NZDUSD is up 0.3% to 0.6028 and so AUDNZD is flat at 1.0925. The cross reached a high of 1.0929 earlier but has spent most of the session range trading.
• USDJPY is little changed today at 151.69 as there hasn’t been any data or comments warning about speculation in the yen.
• USDNOK is down 0.3% to 10.699 while EURUSD is up 0.1% to 1.0844. GBPUSD is steady at 1.2654.
• Moves in Asia have been muted with China, HK and Taiwan closed. USDMYR saw the largest shift falling 0.3% to 4.74. The baht is also stronger against the dollar by 0.1% at 36.66. After BI intervention earlier in the week USDIDR is down 0.1% to 15895, which is around Tuesday’s low.