The USD strengthened across the board. NZD sharply underperformed in G10, down 1.8% to 0.733, after the RBNZ surprised on the dovish side. AUD also plunged 1.3% to 0.787 as expectations grew on imminent RBA rate cuts. AUDNZD traded to a high of 1.08 before moderating to 1.074. Elsewhere, EUR fell further to 1.127, and USDJPY rose to 117.9. KRW led the selloff in EM FX, down 0.8% to 1093, followed by TWD and MYR. USDMYR failed to break above 3.635, seemingly capped for now by Malaysia’s central bank. For the high yielders, IDR lost 0.4%, while INR edged 0.2% lower. USDCNY fixed 53pips higher to 6.1335, while USDCNY spot continued to trade near the upper end of its policy bands.
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