Free Trial

USD Nosedive Drives FX In Asia

FOREX

USD was the big mover overnight, as it started the week with a nosedive.
Sino-U.S. tit-for-tat consulate closures inspired JPY demand early on, which
sent USD/JPY to fresh cycle lows. The spot continued to slide, even
as broader JPY strength waned, while a surge in gold and concerns over
U.S. fiscal matters kept denting DXY, pushing it to a 22-month low.

  • USD sales helped USD/CNH probe the water below the CNH7.0 mark, in spite
    of a softer than expected PBoC fix and persistent Sino-U.S. jitters. A jump in
    Chinese industrial profits may have helped the redback.
  • The Antipodeans recouped initial losses, with AUD looking through comments
    from RBA Asst Gov Kent. The official stuck to a familiar script, expressing
    preference for a weaker AUD, but noted that the currency trades in line
    with fundamentals.
  • NOK led gains in G10 FX space, even as its oil-tied peer CAD landed
    towards the lower end of the pile.
  • Focus turns to German Ifo Survey and flash U.S. durable goods orders.

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.