Free Trial

JPY Weakens As Yields Rebound, A$ Lower Post RBA


The USD DXY index is holding comfortably above 105, largely thanks to higher USD/JPY levels as yields rebound. AUD/USD has fallen post the RBA statement, while most other currencies are slightly firmer against the USD.

  • USD/JPY has been supported by a rebound in US Cash Tsy yields, as these markets re-opened, with the 2yr back up to 2.94%, nearly +11bps on the day. This follows a strong bounce overnight in EU markets. USD/JPY reached close to 136.40, but is back to 136.25, +0.45% for the session.
  • The RBA raised the cash rate by 50bps to 1.35%, as widely expected. AUD/USD dipped post the RBA announcement as the central bank sounded more cautious on the outlook and removed a reference to rates being low in the accompanying statement. We dipped to the low 0.6850 region before sentiment stabilized. Earlier highs were at 0.6895.
  • Elsewhere, much of the focus has been US-China talks and the potential for tariff relief, although nothing concrete has emerged yet. China equities couldn't rise though, despite this news and a strong upside beat on the China Caixin services PMI (54.5 versus 49.6 expected). USD/CNH has remained range bound, last at 6.6925.
  • US equity futures are tracking higher, although are well down on earlier session highs. This has helped JPY underperform at the margin, particularly on a cross basis.
  • Other pairs are sticking to recent ranges. EUR/USD is holding above 1.0430, while NZD/USD is around 0.6210, largely ignoring a poor Q2 NZIER business survey.

To read the full story



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.