Monday was marked by risk-off trading, with equities tumbling after the PBOC set the onshore USD/CNY rate above 6.90 for the first time this year, prompting traders to push the offshore USD/CNH pair well above the key 7.00 mark. In the central-bank world, the RBA refrained from acting this morning, but kept the door open for further easing in the months to come. Tonight, the torch will be passed to the RBNZ, which is expected to cut its OCR by 25bps.
Bloodbath in Equities Continues as USD/CNH Breaks Above 7.00
The dollar traded lower against the majority of the other G10 currencies on Monday and during the Asian morning Tuesday. It was found higher against JPY, and slightly against AUD, while it underperformed versus EUR, CHF, SEK, CAD, NOK and GBP in that order. The greenback was found virtually unchanged against NZD.
At first glance, the performance in the FX sphere provides little with regards to the broader market sentiment. However, throughout most of the day yesterday, we saw the...
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