Free Trial

USD Dominates, Fresh Lows For A$, NZ$, CNH And KRW

FOREX

The DXY is back above 104.00, but stronger gains seen against commodity FX and Asian FX

  • The USD has been on the front front for much of the day, with AUD/USD and NZD/USD down 0.80% and 0.90% respectively. Only JPY is higher against the USD. EUR/USD is modestly weaker, but holding above 1.0500 at the time of writing.
  • Positive Asian equity sentiment from yesterday has unraveled, all major markets weaker in the region. Fresh community transmission of Covid in Shanghai dashing hopes of an easing of restrictions in the near term. Equity futures in the US have also turned more negative, presenting an additional headwind.
  • Commodity sentiment also softened, Brent crude back down and Iron ore back to $126/tonne.
  • USD/CNH also broke higher, rising above 6.8000. The market shrugged off the marginally stronger than expected CNY fix. The covid news above not helping, while PBOC Dep Gov Chen noted that the central bank has guided loan interest rates to decline and increased focus on growth stabilsation.
  • Other USD/Asia pairs have tracked USD/CNH higher, albeit with a beta lower then 1. The exception has been USD/KRW, where spot is up 1.2%, and breaking above 1290. 2020 highs are now in sight for this pair.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.