WILL SAFE HAVEN CURRENCIES CONTINUE TO PUSH UP?

Cautious trade comments from Peter Navarro pushed safe havens to top of the G10 FX table, in what was a limited Asia session. Navarro suggested that it is unlikely that there will be a quick breakthrough in Sino-U.S. trade talks.

The DXY is just off recent highs. The NY/Asia crossover saw Mnuchin note that the Treasury "doesn't intend to intervene in the USD right now," but he did signal that he'd prefer any future move be coordinated with the Fed & global allies.

AUD struggled on the back of a weak headline Q2 CapEx print, making it 2/2 in terms of soft Q2 GDP input readings over the last couple of sessions. NZ saw the softest ANZ business confidence reading since the GFC.

MXN struggled, driven by Argentina seeking to "re-profile" its sovereign debt obligations. USD/MXN has broken trend resistance that dated back to Dec'16.

Economic Data

Busy day in terms of economic data with French, German, and Spanish GDP releases,  US GDP releases, US Price Index and US Initial Jobless Claims.

AUD/USD (blue) vs NZD/USD (orange) vs MXN/USD (black)

Forex chart

Dollar Index DXY

Forex Chart

Posted on

August 29, 2019

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Market Updates

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