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AUDUSD TECHS

Bearish Focus

MONTH-END EXTENSIONS

Updated Barclays/Bbg Extension Estimates for US

US TSYS

Late Session Selling

FOREX
FOREX: The lack of +ve signals from the U.S.-China trade war front & spiralling
unrest in Hong Kong stymied recovery in risk appetite, although earlier risk-off
moves have retraced somewhat, leaving most G10 crosses little changed. AUD
underperformed, following the release of the minutes from the RBA's Nov policy
meeting. The document revealed that members "agreed that a case could be made to
ease monetary policy," even as they decided to stay their hands this time. A
spill-over damaged NZD to a degree. JPY took advantage of its safe haven status.
- Asian FX faced selling pressure amid trade war uncertainty. KRW was the worst
performer in the space, with USD/KRW breaching its 200-DMA. A slightly stronger
than exp. fixing from the PBoC failed to drag USD/yuan into negative territory.
- Recapitulating his stance expressed at y'day's meeting with Fed Chair Powell,
U.S. Pres Trump deplored "too high" interest rates and "too strong a Dollar."
- Coming up today are U.S. housing starts & building permits and Canadian m'fing
sales. NY Fed Pres Williams, BoC Snr Dep Gov Wilkins and Norges Bank Dep Gov
Matsen will offer today's portion of central bank rhetoric. Elsewhere, UK PM
Johnson will face Opposition Leader Corbyn in a televised debate.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com