ASIA-PAC FX UPDATE: DXY remains sub-110.00 whilst USD/JPY probes 146.00 to the downside

Analysis details (02:57)

In FX, DXY was caged to a tight range under 110.00 in early trade after slumping from a 111.13 peak on Wednesday, through its 150 DMA (110.76), with the downside being in lockstep with Treasury yields. G10 peers are mixed with GBP the early outperformer with The Telegraph reporting that UK PM Sunak is reconsidering tax rises as an improving economic picture means the PM is examining whether some of the sweeping measures can be watered down. USD/JPY is modestly softer and probes 146.00 to the downside. EUR/USD holds onto gains above parity as the DXY remains despondent under 110.00 and with traders looking ahead to the ECB announcement. AUD/USD is relatively flat and among the underperformers despite Westpac's Evans now forecasting a 50bp rate hike from the RBA next week (vs market expectations for 25bps hike). NZD/USD remains underpinned as the relative AUD weakness keeps AUD/NZD above 1.1100. CNH is flat under 7.2000 against the USD, whilst PBoC’s Yuan fix was largely in-line with expectations.

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