ASIA-PAC FX UPDATE: Quiet trade in FX with DXY around 111.00 and CNH seeing modest strength post-fixing

Analysis details (02:47)

FX markets are relatively quiet thus far with DXY consolidating after its fall from a high of 112.13 yesterday to levels under 111.00 – with the index reclaiming a 111.00-handle throughout the early APAC hours. G10s are mostly lower against the Buck. EUR/USD trades just under yesterday’s 0.9976 high as the pair eyes parity after topping its 50 DMA (0.9889) yesterday. GBP/USD holds onto most of yesterday’s gains which saw the pair test 1.1500 to the upside amid the prior day’s Dollar weakness and as the UK named Rishi Sunak as its new PM. USD/JPY topped 148.00 in the run-up to Friday’s BoJ announcement, whilst Japan’s top FX diplomat again hit the wires as emphasised that they will continue to take bold steps against excessive currency moves. AUD saw some brief upside after Q3 Aussie CPI printed hotter-than-expected across almost all metrics, with RBA pricing for a 50bps hike also ticking modestly higher, however, the gains quickly reversed amid Dollar strength and risk aversion. NZD is also softer against the Dollar whilst on the data front, ANZ Business Outlook and Own Activity deteriorated M/M. CNH saw some immediate strength after the PBoC opted for a firmer-than-expected Yuan fix, which saw USD/CNH fall from 7.3400 to 7.3160 before paring back half of the move.

26 Oct 2022 - 02:46- Research Sheet- Source: Newsquawk