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Yen Lands Atop G10 Pile, Antipodeans Lag

FOREX

The yen has taken the lead after outperforming on Monday, when it was the only major currency faring better than the U.S. dollar. Regional headline flow has provided little to dispel familiar fears.

  • Preference for safety seems to be occupying the driver's seat at the moment. Apart from JPY, the likes of USD and CHF are stronger than the risk-sensitive Antipodeans.
  • Downticks across all three main e-mini futures contracts provide evidence of cautious mood.
  • USD/JPY is probing the water below the Y133.00 mark as we approach the Tokyo fix. Regional risk barometer AUD/JPY has sold off, nearing support from yesterday's low/100-DMA.
  • The minutes from the RBA's most recent monetary policy meeting provide the highlight of today's Asia-Pac session.
  • Later in the day, focus will turn to German ZEW Survey, UK jobs data, U.S. industrial output & housing starts as well as Canadian CPI.

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