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USD Rally Takes Hiatus

FOREX

The greenback paused its rally on Tuesday and commodity currencies rallied, a trend that extended into Asia-Pac hours on Wednesday.

  • AUD is higher following GDP figures that beat estimates. Q4 GDP printed 3.1%, above estimates for 2.5%. AUD/USD rose to 0.7838 following the release, matching Tuesday's high, before dropping back to 0.7831.
  • NZD has squeezed out a handful of pips, last up 3 pips at 0.7293. FinMin Robertson announced that applications for the gov't's wage subsidy scheme will re-open tomorrow and payments will start going out on Monday.
  • JPY has weakened from opening levels, but remains above worst levels from yesterday. USD/JPY last up 5 pips at 106.74 after retreating from 106.95 in US hours. Local press reports have suggested that the state of emergency in Tokyo might be extended.
  • PBOC fixed USD/CNY at 6.4565, 12 pips above sell-side estimates. Offshore yuan has strengthened, USD/CNH down 30 pips at 6.4718, but still within yesterday's range after the pair rose sharply yesterday following bubble warnings from regulators.

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