ASIA-PAC FX UPDATE: DXY fails to mount 112 whilst JPY saw a knee-jerk and Yuan weakened on the PBoC fixing

Analysis details (02:57)

DXY remains under 112.00 after printing a peak at 112.54 yesterday – in between its 10 DMA (112.58) and 21 DMA (112.49), with relatively contained price action in the early APAC hours. GBP is the current outperformer with GBP/USD back on a 1.1300 handle at the time of writing as APAC players react to Rishi Sunak winning the Conservative leadership race to become PM. EUR sees modest gains as it eyes its 50 DMA (0.9892) to the upside ahead of the 0.9900 mark after failing to mount the level following mixed EZ Flash PMIs. JPY was relatively stable but saw a knee-jerk higher after Japan maintained its overall economic view unchanged that the economy is picking up moderately and said that "full attention" must be paid to market volatility, with USD/JPY moving from around 148.85 to 148.45 in two minutes before stabilising around 148.75 - in a move that coincided with the release. Antipodeans are also firmer with AUD/USD back above 0.6300 ahead of the Australian budget at 09:30BST/04:30EDT, with immediate market focus on the economic forecasts. NZD/USD meanwhile oscillates around 0.5700 but with gains somewhat hampered as AUD/NZD eyes 1.1100 to the upside. The offshore Yuan came under sudden pressure after the PBoC opted for the weakest Yuan fix since January 2008, with USD/CNH moving from 7.3150 to 7.3625 in two minutes.

25 Oct 2022 - 02:56- Research Sheet- Source: Newsquawk