Asia FX Handover

A snapshot view of currency moves throughout the Asia session, ahead of the UK open.

  • Taking a weak lead from Wall Street, sentiment remained under pressure following renewed global growth concerns after OECD lowered their forecasts.  
  • Mixed data from Australia saw construction PMI contract for a sixth month, exports hit 6-month high and retail sales rise just 0.1% on the month. Regardless, AUD and NZD are today’s strongest majors, support by a weaker USD and Trump’s desire to ‘cut a deal’ with China to help markets rally.
  • USD and EUR are the weakest majors ahead of today’s ECB meeting. No change of policy is likely although we could see ECB staff lower projections following a run of weak data.
  • Volatility remained contained throughout the session, with pairs trading just 20%-60% of their typical daily ranges ahead of the UK open.

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