USD, Tsy Yields Marginally Firmer As Shutdown Avoided

The USD has ticked marginally higher alongside US Tsy Yields after a US Government shutdown was avoided. .Yesterday Congress passed a stopgap funding bill Saturday evening. The Senate voted to pass the bill on a 88 to 9 margin after the House had voted 335-91. The deal funds govt to the 17 November 2023.

• AUD/USD is pressured and sits at $0.6415/20, the pair is down ~0.3%. For now short term gains are considered corrective, and the trend condition remains bearish. Support comes in at $0.6331, low from Sep 27 and bear trigger. Resistance is at $0.6487 the 50-Day EMA.
• Kiwi is little changed, NZD/USD has see-sawed around the $0.60 handle in thin trade this morning. It is likely that pre-RBNZ positioning will dominate flows this week.
• The Yen is pressured, USD/JPY is up ~0.4% and sits at ¥149.75/80. The trend outlook for USD/JPY is unchanged and remains bullish. Resistance comes in at ¥149.71, high from October 24 2022, then 150 which is round number resistance. Support is seen at ¥147.82 the 20-Day EMA.
• Cross asset wise; US Tsy Yields are ~4bps firmer across the curve. E-minis are up ~0.6%. BBDXY is ~0.1% firmer.
• Looking ahead, the docket is mostly thin in Europe today, the September ISM MFG Survey is due further out.