AUD DROPS ON RBA’S INTOLERANCE FOR STRONG AUD
* USD is quiet but favouring strength leading into Wed’s FOMC decision.
* Today’s data includes: PPI, retail sales, case shiller & confidence.
* CAD—is outperforming as flows likely offset today’s Gov Poloz risk at 12 EST and tomorrow’s FOMC. Only second‐tier data today.
* EUR is soft—limited news flow but rising risk of ECB response to EUR.
* GBP is soft; consumer credit lower but mortgage approval rise—while Tuesday’s comments from Spencer Dale highlight risk to 7% threshold.
* JPY is flat waiting for FOMC & BOJ, but data is stronger than expected.
* AUD weakens‐Gov Stevens highlights lack of tolerance for strong AUD.
* CNY—a small liquidity injection does little to sooth mmkt strains.
Read full report: FX Daily
Scotiabank