The yen is weighed down on a more risk-on mood in markets
Positive Chinese economic data earlier today gave some reassurance to markets with regards to concerns about the global economic slowdown, and MSCI's decision to increase Chinese stocks' weighting in their index helped to bolster regional equities as we begin the new day.
Chinese stocks are finishing the session strongly, with the Shanghai Composite now up by 1.5%. And the more positive risk mood is helping to underpin yen pairs, with USD/JPY trading at more than two-month highs around 111.78 currently.
Although the kiwi and loonie are seen leading gains, trading ranges remain relatively narrow for the most part with the former gaining on the back of cross-selling in AUD/NZD while the latter is boosted by more buoyant oil prices.
NZD/USD holds in a 16 pips range still with USD/CAD in a 26 pips range. As for other major currencies, price action is also relatively subdued with EUR/USD sitting in a 11 pips range as we await European traders to join in on the action.
Looking ahead, risk sentiment looks to be more positive as we begin the European morning so that will see yen pairs stay underpinned for now. There's a host of economic data to come as well to move things along but I wouldn't expect the releases to change things all too much on the day. Trading sentiment will still largely rely on the ebb and flow at this point.
