AUSSIE BONDS: Nov-31 Supply Well Absorbed But Less Demand Present
The latest round of ACGB Nov-31 supply sees the weighted average yield print 0.62bps through prevail...
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MNI: CHINA PBOC CONDUCTS CNY156.3 BLN VIA 7-DAY REVERSE REPO WEDS
- CHINA PBOC CONDUCTS CNY156.3 BLN VIA 7-DAY REVERSE REPO WEDS
FOREX: AUD Crosses - AUD Holding Up Ok In The Crosses, Ranges Dominate
With the odds of the US becoming involved in the war against Iran increasing everyday, the upward momentum of US equities seem to be stalling. ESU5 +0.12%, NQU5 +0.16%. The window for a peaceful resolution in the middle east seems to be closing and with the US potentially now getting involved, the USD is finally looking to bounce. The AUD upward momentum has stalled against the USD as a result but it is outperforming for the moment in the crosses.
- EUR/AUD - Overnight range 1.7664 - 1.7751, Asia is currently trading around 1.7715. The pair has drifted 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. If this support fails, the pair will be back in its 1.7200 - 1.7700 range.
- GBP/AUD - Overnight range 2.0715 - 2.0788, Asia is trading around 2.0700. This pair is back in the middle of its 2.0500-2.1050 range. A break above 2.1050 is needed to see the move higher once more gain momentum.
- AUD/JPY - Overnight range 93.95 - 94.84, Asia is trading around 94.25. 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 1.0758 - 1.0776, the cross is dealing in Asia around 1.0770. A top looks in place now just above 1.0900, the cross topped out last week towards the 1.0800/25 sell area, but the momentum lower seems to have stalled for now, with the range for June basically being captured within a 1.0750 - 1.0800 range.
Fig 1: GBP/AUD spot Hourly Chart
Source: MNI - Market News/Bloomberg Finance L.P
CNH: USD/CNY Fixing Edges Up, Error Term Notably Wider
The USD/CNY fixing printed at 7.1761, versus a Bloomberg market consensus of 7.2001.
- The fixing was slightly above yesterday's outcome, 7.1746. The fixing error though widened too -240pips, from -73pips yesterday. This is the widest fixing error since May 21.
- USD/CNH is a little lower in latest dealings, last close to 7.1870/75, but remains very much within recent ranges.
