by Chris Becker
The Australian dollar has rebuffed the 72 cent level against USD after the release of the 4Q construction activity report this morning:
This big miss will be recalculated by the market as many investment houses will race to review their RBA rate calls and hence put a headwind in front of the Pacific Peso, which had launched higher last night after the Fed Chairman Powell confirmed the Reserves rate rise agenda was at the very least paused. This new dataset could unwind a lot of long positions that have been created since the flash crash bottom at the start of the year.
Meanwhile, the PBOC is on a tear getting the Yuan to rise against USD with today’s fix moving another handle further to 6.6857 from yesterday’s 6.6952, sending offshore trading lower and still on a significant downtrend since the US/China trade talks began:
