China’s fix will again be watched – Westpac

By FXStreet FXStreet (Bali) – Martina Song, FX Strategist at Westpac, summarizes the action seen during Monday in the market, in which an attempt of recovery for riskier asset failed to garner as much momentum as one would have expected judging by the improved sentiment seen in Europe.

Key Quotes

The fall in crude prices to lows back to 2003 sent the mood for the London/NY sessions. WTI futures down to as low as $30.88 per barrel. Metals were also under pressure, spot iron ore falling around 2% to $42.31/tonne. Copper made fresh lows back to May 2009.

AUD/USD continued on its recovery throughout the London morning, trading from 0.6960 up to highs of around 0.7035. The fall in oil prices dragged the Aussie back, the currency slipping to around 0.6985/90 early Sydney. NZD rose from 0.6520 to 0.6580 and was around 0.6555/60 in the Sydney morning. AUD/NZD is thus little changed at 1.0660 after touching 1.0700.
EUR/USD fell from 1.0935 to 1.0850. USD/JPY had risen from 117.10 to just above 118.00 before almost completely retracing the move, falling with oil. A late NY/early Sydney bounce in equities saw the yen reverse and USD/JPY rise back to 117.75. USD/CAD probed 1.4250, trading with as 1.42 handle …read more

Source:: FX Street