Thu, Sep 29, 2022 @ 08:13 GMT
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Into US session: AUD strongest on China data, German and US yields jump

Entering into US session, Australian Dollar remains the strongest one for today, as boosted by better than expected Chinese data. The data further suggests stabilization of slowdown, which is an important factor for the easing global economic risks. While the optimism is not so much reflected in the stock markets, bonds are clearly responding well. German 10-year yield is is now back at 0.08 level while US 10-year yield breaches 2.6 handle.

Staying in the currency markets, Euro is the second strongest for today. German government halved 2019 growth forecast to just 0.5%. But it’s largely shrugged off. The key is, Eurozone economy as a whole will certainly be benefited if China could regain some momentum. Canadian Dollar is the third strongest, but could be dragged down by CPI release. On the other hand, New Zealand Dollar is the weakest one as poor Q1 CPI reading raises the chance of an imminent RBNZ cut at next meeting. Swiss Franc and Dollar are the next weakest. Sterling is mixed after slightly lower than expected March CPI.

In Europe, currently:

  • FTSE is down -0.11%.
  • DAX is up 0.32%.
  • CAC is up 0.28%.
  • German 10-year yield is up 0.0111 at 0.082.

Earlier in Asia:

  • Nikkei rose 0.25%.
  • Hong Kong HSI dropped -0.02%.
  • China Shanghai SSE rose 0.29%.
  • Singapore Strait Times rose 0.50%.
  • Japan 10-year JGB yield rose 0.01 to -0.01.

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