Commodity currencies lag while safe haven currencies lead the way
A familiar theme? The FX market has been largely unphased by the wild ride in the bond and equities market, but there are good two way actions to be had when risk sentiment twists and turns during the day.
The start of Asia saw the NZD surge after upbeat jobs data, but it has quickly turned on its head and now the kiwi is pretty much lagging behind along with the aussie as AUD/USD and NZD/USD tests session lows for the day.
Meanwhile, USD/JPY tested a high of 109.72 early on in Asian trading as equities look to have rebounded and the Nikkei was higher by more than 3% at that time. But risk sentiment quickly turned around, as US equity futures also headed lower, and with the Nikkei closing near the lows, USD/JPY is now trading near the lows as well at 109.18.
The dollar remains mixed against most other major currencies, as the euro, sterling, loonie, and swissie remain relatively range-bound on the day.
It looks like it's going to be another interesting day in the market, so let's see what Europe has to bring.
