AUSSIE BONDS: ACGB Dec-35 Supply Digested But Less Demand
Expectations of sustained strong pricing at auctions proved accurate, with the latest round of ACGB ...
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CNH: USD/CNY Fixe Edges Lower
The USD/CNY fix printed at 7.2055, versus a BBG market consensus of 7.2926
* The fixing was lower, in line with the market's fixing estimate compared to yesterday. The fixing remains within recent ranges though.
* USD/CNH is relatively stronger by +0.14% in this morning's dealings, last near 7.2963
FOREX: Presidential Pressure To Cut Rates Driving US$ Lower
The USD has continued weakening in early APAC trading after it fell further on Friday despite higher 10-year US yields driven by US President Trump pressuring Fed Chair Powell to cut rates and threatening to replace him. The USD DXY index is currently down 0.6% after 0.3% on Friday with all G10 currencies stronger against the greenback but especially risk-averse euro, yen and Swedish krona. Trading continues to be impacted by holidays with Europe closed today as well as Australia/NZ & Hong Kong.
- USDJPY is down 0.8% to 141.06 slightly off the intraday low of 141.05, its lowest since September 2024 and below support at 141.62 and approaching 141.00. PM Ishiba has spoken on US-Japan trade talks stating that they could be a “model” for the rest of the world. They are being watched closely given that Japan is a close ally of the US.
- The euro is 0.7% stronger against the US dollar at 1.1474 following a peak of 1.1486, highest since February 2022 and above resistance at 1.1473. Italian PM Meloni said that she believed that an EU-US trade agreement could be reached to reduce the 20% US tariff.
- The Swiss franc also continues to benefit from the pullback in risk. USDCHF is +0.7% to 0.8110 while EURCHF is flat at 0.9305.
- Risk-sensitive Aussie is underperforming with AUDUSD up only 0.2% to 0.6386 off the intraday high of 0.6400. Kiwi is outperforming with NZDUSD rising 0.4% to 0.5962 leaving AUDNZD down 0.2% to 1.0712. Both markets are shut today.
- Asian equities are so far mixed with the Nikkei down 10% but KOSPI up 0.1% while the S&P e-mini is 0.5% lower. Oil prices are weaker with WTI -1.8% to $63.50, Copper -0.7% but iron ore up slightly to above $98.50/t.
CHINA: Loan Prime Rates Unchanged.
- China Benchmark 5-Year Loan Prime Rate Kept Unchanged at 3.6%
- China Benchmark 1-Year Loan Prime Rate Kept Unchanged at 3.1%
