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US EURODLR FUTURES

Pressured Early

US TSYS

Pressure Continues

AUSSIE 10-YEAR TECHS

(Z1) Off Lows, But Remains Weak

AUSSIE BONDS

Selling In IRZ1 Witnessed Early This Week

DOLLAR-YEN
DOLLAR-YEN: USD/JPY has shed 12 pips so far and sits at Y106.96, as the
escalation of U.S.-China tensions over the last 24 hours or so remains front and
centre. The Nikkei 225 futures are pointing to a lower open.
- The yen benefited from yesterday's switch into the risk-off mode, inspired by
the mounting sources of tensions between the U.S. and China, in the direct
run-up to their bilateral talks. Despite edging higher initially as China
confirmed that its top off'l will attend Thursday's negotiations w/U.S.
counterparts, the rate sold off sharply into the London noon. Some fresh demand
for USD/JPY emerged into the WMR fix, but those gains were pared late doors amid
the previously documented developments in U.S.-China relations.
- The pair threatens to break below the 38.2% retracement of its Aug 26 - Sep 18
rally at Y106.94, which would open up the 50-DMA at Y106.89 and the Oct 3
low/50% retracement of that rally at Y106.48/47. Bulls look to recover the Oct 7
high of Y107.46, which would clear the way to the 100-DMA at Y107.61.
- Japanese focus turns to flash machine tool orders, due later today, as well as
PPI, core machine orders and a speech from BoJ Dep Gov Amamiya, due Thursday.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com