USD Dips Despite Ongoing Rise In Yields
Leading Asia-Pacific indices to the upside is the Topix at +0.99%, followed by the Nikkei 225 at +0.84% and the ASX 200 at +0.05%. The Hang Seng and CSI 300 are both negative on the session at -0.19% and -1.45%, respectively.
In the FX complex, despite a further rise in US yields, it’s USD leading to the downside, with DXY now firmly back below the 101.00 handle, allowing EURUSD to reclaim the 1.08 handle.
In contrast, it’s the commodity-linked currencies leading to the upside, with AUD in pole position, followed closely by NZD and CAD, with Reuters noting: “major shifts in trade flows and bond yields favoured the resource-heavy currencies.” As such AUDUSD has reclaimed the 0.74 handle, while GBPCAD has slipped below the 1.64 handle.
Looking ahead, today’s focus will remain on the commodity-linked currencies CAD and NZD, with the release of Canadian CPI in today’s US trading session and New Zealand CPI early in the following Asia-Pacific session.
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