Antipodeans extend China rate cut-led rally, German Ifo eyed
By FXStreet FXStreet (Mumbai) -Asia cheered China rate cut news with the risk-on rally seen in the Asian equities and rising demand for risker assets. The Antipodean currencies enjoyed gains from the persisting risk-sentiment while the USD/JPY was sold-into the USD correction after last week’s relentless rise.
Key headlines in Asia
CFTC: Net long USD lowest since July 2014 – ANZ
Dominating themes in Asia – centered on JPY, AUD, NZD
Broad based US dollar weakness was the main theme in Asia as bulls took a breather from last week’s rally and corrected lower, despite the persisting upbeat sentiment on the equities. As a result, the USD/JPY pair dropped to 121 handle, having peaked at 121.50 levels – fresh seven-week highs last Friday.
The Antipodean currencies rejoiced China rate cut inspired risk-on trades in the global equities, and therefore boosted the demand for higher yielding currencies. The Aussie keeps pushing; having tested the hourly 200-SMA located at 0.7260 and now targets 0.73 barrier. While the Kiwi also follows suit and jumps 0.48% to 0.6780, as markets have almost priced-out a rate cut at the RBNZ policy decision this week and the focus now solely remains on the FOMC statement …read more
Source:: FX Street
