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Australian Dollar clings to early recovery near 0.6970, US data takes centre stage
The Australian Dollar (AUD) holds onto its early recovery move at around 0.6970 against the US Dollar (USD) during the European trading session on Wednesday. Still, the Aussie pair is down 0.19% to near 0.6970.
USD/JPY: Intervention fears steer Yen strength – Societe Generale
Kit Juckes at Societe Generale highlights Japanese Yen outperformance in G10 as markets anticipate further USD/JPY intervention. He argues that strong intervention expectations are driving reluctance to be short Yen, with EUR/JPY likely sold on rallies. However, he cautions that another spike in Oil prices could quickly reverse recent improvements in risk sentiment, keeping overall caution warranted.
Euro: ECB pushback weighs on currency – MUFG
MUFG’s Lee Hardman highlights that European Central Bank (ECB) President Lagarde has pushed back against expectations for another back-to-back ECB rate hike, stressing higher long-term yields and the need for a measured response.
Ireland Retail Sales (YoY) rose from previous 2.2%Â to 4.3% in August
Ireland Retail Sales (YoY) rose from previous 2.2%Â to 4.3% in August
Ireland Retail Sales (MoM) declined to 0.6% in August from previous 1.3%
Ireland Retail Sales (MoM) declined to 0.6% in August from previous 1.3%
EUR/USD: Dollar correction faces resistance – Societe Generale
Societe Generale’s Kit Juckes notes a softer Dollar as Oil and bond yields edge lower and equities firm, with month-end flows likely in play.
USD/JPY: Offered tone with key 155–158.20 range – Societe Generale
Societe Generale’s FX team reports USD/JPY trading between 156.38 and 157.52 overnight, with the pair mildly offered on dovish New York Federal Reserve President John Williams comments and fiscal half‑end repatriation flows.
Pound: Stronger UK growth and reverse-Brexit risk – MUFG
Lee Hardman at MUFG reports the Pound is consolidating near year-to-date lows against the Dollar despite resilient UK growth, with Q1 and Q2 GDP both revised higher and BoE staff upgrading Q3 forecasts.
Germany 10-y Bond Auction rose from previous 3.26%Â to 3.58%
Germany 10-y Bond Auction rose from previous 3.26%Â to 3.58%
US Treasuries: Curve steepens with long yields at cycle highs – Deutsche Bank
Deutsche Bank’s Early Morning Reid notes a mixed US Treasury session, with 10-year and 30-year yields holding or extending post-2000s highs while the 2-year falls.
Mexican Peso: Carry trade unwind risks into Q4 – Societe Generale
Societe Generale’s Kenneth Broux warns that one defining September theme in EM has been a sharp unwind in carry trades, particularly in the Mexican Peso, which is down 6% on spot this month.
Softer Australia CPI but RBA still hawkish – Rabobank
Rabobank’s day-ahead section highlights Australia’s August CPI as slightly softer, with headline inflation at 0.4% m/m and 4.0% y/y, and trimmed mean at 0.2% m/m and 3.6% y/y. Earlier in Q3, the RBA delivered another rate hike and is seen tightening again in the new year. Weak building approvals contrast with booming data centre activity, shaping Australian Dollar prospects.
South Africa Producer Price Index (MoM) up to -0.4% in August from previous -1%
South Africa Producer Price Index (MoM) up to -0.4% in August from previous -1%