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Some Capitulation From Post-NFP Moves

FOREX

Major pairs seeing some capitulation after a weaker than expected US NFP number on Friday saw the greenback weaken. Volumes are expected to be light today with US participants observing the Labor Day holiday.

  • AUD is bottom of the G10 pile so far in Asia, pulling back from six-week highs. The market looks ahead to tomorrow's RBA meeting while COVID-19 case numbers continue their upward trend.
  • New Zealand's Cabinet will review Covid-19 alert level for areas outside of Auckland today. The decision will be announced at 16:00 NZST/05:00 BST and the main question is whether the level will be lowered from the current level 3.
  • In Japan political headlines have continued to do the rounds after PM Suga set off succession race last week, with vaccine czar Taro Kono leading the pack in the latest opinion polls.
  • Looking ahead markets will eye rate announcements from the RBA, ECB and BoC this week, as well as a raft of Fed speakers who will be scrutinized for taper clues after labour market disappointment last week.

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