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The FX space witnessed a quiet start to the...>

FOREX
FOREX: The FX space witnessed a quiet start to the Asia-Pac session, shrugging
off a late sell-off in U.S. equity index futures Thurs. This was before the PBOC
fixed USD/CNY > 6.9500 for the first time since Jan '17, triggering yuan
weakness & risk off trade. Sources noted that USD/CNH's break > CNH6.9700 was
driven by fast money, while macro & onshore players remained quiet.
- AUD/USD registered a fresh YTD low on the risk off flows, with bears targeting
the psychological $0.7000 level, while NZD/USD has eased < $0.6500, bringing the
rate's YTD low at $0.6425 back into view. AUD/NZD trades 10 pips or so softer at
NZ$1.0845 last. The rate's 200-DMA, which now stands at NZ$1.0828, has acted as
a pivot point in recent weeks.
- JPY gained, with USD/JPY last Y112.13, which represents the 50-DMA, bears now
target a close < trendline support (112.07) to open up the 100-DMA (Y111.54).
- USD had no reaction to comments from Fed's Mester & Kashkari who stuck to
their respective scripts.
- Focus turns to U.S. GDP Friday, S&P's review of Italy's sovereign debt rating,
as well as comments from ECB's Draghi & Coeure.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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