AUD/JPY defends corrective pullback from multi-day low, edges higher of late. Risk-off mood cools amid stimulus hopes, further support for easy money policies. Over half of Australia is under virus-led lockdown, Tokyo again registers over 1,000 cases. BOJ Minutes, Aussie Retail Sales could offer immediate direction, risk catalysts are the key. AUD/JPY holds onto corrective
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Fresh lows in rates US rates are at the lows of the day, edging through 1.16% as some risk aversion creeps into markets. The building permits data was on the soft side but I suspect this is more follow through from yesterday. In FX, the euro tested yesterday’s low at 1.1765 but held it on
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Yen and Swiss Franc dominates the markets for the day, as selloff in stocks spread from Asia to Europe, to US. Risk aversion intensified with DOW down over -800 pts in initial trading, while 10-year yield breaks1.2 handle. Canadian Dollar is the worst performing one, as WTI crude oil breaks below 70 handle. However, Australian
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In its latest analysis of Australia, the global rating giant Fitch said, “If higher inflation and interest rates over 2021-2023 modestly exceed our baseline projections, this could be credit positive for the sovereign and banks.” However, the interesting part was the rating institute’s comments over Australian economics, as follows. Key quotes Structured finance transactions are
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