USD: BBDXY - Correction Stalls With Powell Sacking Rumour, Is That All It Takes?

After a strong period of inflows, recent days have seen outflows beginning to become more consistent.

• South Korea: Recorded outflows of -$151m yesterday, bringing the 5-day total to +$812m. 2025 to date flows are -$7,928. The 5-day average is +$162m, the 20-day average is +$171m and the 100-day average of -$81m.
• Taiwan: Had outflows of -$29m as of yesterday, with total inflows of +$2209 m over the past 5 days. YTD flows are negative at -$10,402. The 5-day average is +$442m, the 20-day average of +$34m and the 100-day average of -$103m.
• India: Had outflows of -$43m as of the 13th, with total inflows of +$200m over the past 5 days.  YTD flows are negative -$10,620m.  The 5-day average is +$40m, the 20-day average of -$70m and the 100-day average of -$85m.
• Indonesia: Had outflows of -$9m yesterday, with total inflows of +$72m over the prior five days.  YTD flows are negative -$2,943m.  The 5-day average is +$14m, the 20-day average +$15m and the 100-day average -$29m.
• Thailand: Recorded outflows of -$109m as of yesterday, with outflows totaling -$85m over the past 5 days. YTD flows are negative at -$2,256m. The 5-day average is -$17m, the 20-day average of -$27m and the 100-day average of -$21m.
• Malaysia: Recorded outflows of -$31m as of yesterday, totaling -$127m over the past 5 days. YTD flows are negative at -$3,650m. The 5-day average is -$27m, the 20-day average of -$29m and the 100-day average of -$23m.
• Philippines: Saw outflows of -$49m yesterday, with net outflows of -$51m over the past 5 days. YTD flows are negative at -$564m. The 5-day average is -$10m, the 20-day average of -$17m the 100-day average of -$5m.

This morning's post by President Trump that everyone should evacuate Tehran immediately has seen stocks open soft in our session, if something significant is not seen the danger is this move will also just be reversed. ESU5 -0.40%, NQU5 -0.45%. The AUD has drifted lower back towards 0.6500 on this reaction -0.15%.

• EUR/AUD - Overnight range 1.7690 - 1.7802, Asia is currently trading around 1.7740. The pair is drifting back towards the support around the 1.76/77 area and while this holds the markets focus will be on testing the 1.8000 area again.
• GBP/AUD - Overnight  range 2.0775 - 2.0897, Asia is trading around 2.0830. This pair is back in its 2.0500-2.1050 range. A break above 2.1050 is needed to see the move higher once more gain momentum. If the AUD/USD does start to break higher this could see this air drift back to the 2.0500 area.
• AUD/JPY - Overnight  range 93.56 - 94.55, Asia is trading around 94.40. Choppy price action as the pair establishes a range between 92.00 - 96.00. A break back below 91.50/92.00 is needed to see the move lower regain momentum and the focus turn back to the year's lows again.

• AUD/NZD -  Overnight  range 1.0761 - 1.0795, the cross is dealing in Asia around 1.0760. A top looks in place now just above 1.0900, the cross topped out last week towards the 1.0800/25 sell area, the first target looks to be around 1.0650.

  Fig 1: GBP/AUD spot Hourly Chart

  

  Source: MNI - Market News/Bloomberg Finance L.P

• The PBOC issued CNY197.3bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY198.6 bn
• Net liquidity withdrawal CNY1.3 bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.41%, from prior close of 1.52%.
• The China overnight interbank repo rate is at 1.38%, from the prior close of 1.38%.
• The China 7-day interbank repo rate is at 1.41%, from the prior close of 1.55%.