FOREX: AUDUSD Trades to Fresh 10-Month Highs Following Soft US PPI
Sep-10 16:39
- Despite the dovish adjustment for US yields in the aftermath of the US PPI report, the impact on the USD index has been more muted, with just a 0.05% move lower on the session. Major pairs such as EURUSD and USDJPY have held relatively contained ranges as we await the August CPI report to follow on Thursday.
- With that said, firmer equity sentiment and higher oil prices have notably buoyed riskier currencies, with AUD, NZD and NOK clearly outperforming in G10.
- AUDUSD has breached a key resistance point, trading up to a fresh 10-month high of 0.6636 in the process and strengthening the underlying bullish trend. The next targets for the move are 0.6688 (Nov 07 high) and 0.6700, the 76.4% retracement of the Oct-Apr selloff.
- In contrast, lingering French political risks and geopolitical developments between Russia/Poland have relatively weighed on the Euro, allowing EURAUD to extend its recent depreciation. Despite being a slow burner, EURAUD has respected the breach of trendline support (drawn from the year’s lows) and the cross briefly slipped through the July 31 lows and bear trigger at 1.7674. Targets on the downside include 1.7462 (Jun 10 low) and 1.7248 (May 14 low).
- Oil strength compounded the performance for NOK on the back of the higher-than-expected underlying Norwegian CPI print (3.1% Y/Y vs. Exp. 2.9%). As a result, EURNOK has traded steadily lower, clearing the September lows. The cross has also shown through 61.8% retracement for the upleg posted off the June low, opening next support into 11.5416.
- During Thursday’s APAC session, RBNZ Governor Hawkesby will speak, before Australia consumer inflation expectations. The focus will then turn to the ECB rate decision/press conference and the key US CPI release.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US: Trump 'See What Happens' w/China Pause, Zelenskyy Not Included In Putin Meet
Aug-11 15:47
President Donald Trump has told reporters at the White House, "we'll see what happens" with the China tariff and export control pause that expires at midnight tonight. Trump adds: "We've been dealing very nicely with China. They have tremendous tariffs," but "we'll see what happens". LIVESTREAM The prevailing view is that Trump will endorse a 90-day extension to the pause.
- Trump says on Friday's Alaska meeting with Russian President Vladimir Putin, "This is really a feel out meeting". He says: "Putin invited me to get involved... I believe he wants to get it over with." Adds: "Now, I've said that a few times and been disappointed," cites previous meetings that have been followed by Russian airstrikes.
- Trump: "I'm going in to speak with Vladimir Putin and I'm going to be telling him 'you've got to end it' ... I think we'll have constructive conversations." Trump's tone suggests that he is managing expectations of a major breakthrough in Alaska.
- Trump says that "immediately" after the meeting, he will call European leaders. Trump notes that he "gets along" with Ukrainian President Volodymyr Zelenskyy but disagrees with 'a lot of what he's done'. He notes that the next meeting will be either a bilateral between Zelenskyy and Putin or a trilateral with Trump's involvement.
- Trump's comments comes amid an extended press conference after his Washington DC emergency declaration. Earlier Trump suggested that other Democrat-run cities, including Los Angeles, New York, Baltimore, Chicago, Portland, and Oakland, could be subject to similar federal law enforcement operations. He says, "Democrats are weak on crime".
FED: US TSY 26W BILL AUCTION: HIGH 3.970%(ALLOT 27.15%)
Aug-11 15:32
- US TSY 26W BILL AUCTION: HIGH 3.970%(ALLOT 27.15%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 19.63% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 8.49% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 71.88% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 3.21
FED: US TSY 13W BILL AUCTION: HIGH 4.150%(ALLOT 24.77%)
Aug-11 15:32
- US TSY 13W BILL AUCTION: HIGH 4.150%(ALLOT 24.77%)
- US TSY 13W BILL AUCTION: DEALERS TAKE 36.69% OF COMPETITIVES
- US TSY 13W BILL AUCTION: DIRECTS TAKE 5.58% OF COMPETITIVES
- US TSY 13W BILL AUCTION: INDIRECTS TAKE 57.73% OF COMPETITIVES
- US TSY 13W BILL AUCTION: BID/CVR 2.64
