FX Update: Narrow ranges have prevailed
FX Update: Narrow ranges have prevailed so far today. USD-JPY saw modest downside drift during the Tokyo session, making a two-session low at 110.54. Bigger than expected declines in both Chinese import and export data put a dent in global growth optimism and weighed on stock markets in the Asia region, in turn catalysing some demand for the yen in accordance with the oft-seen inverse correlation the Japanese currency has with stock markets and investor risk appetite. EUR-USD continued to narrowly orbit the 1.1800 level, consolidating above last Friday's post-U.S. payrolls at 1.1728 and comfortably off last Wednesday's 31-month peak at 1.1910. The solid U.S. July jobs report has interrupted EUR-USD's upside trend, with the associated rekindling of expectations for the Fed to begin quantitative tightening as soon as next month giving the dollar and underlying bid. Cable recouped to a narrow range near 1.3050 after yesterday dipping to a 12-day low at 1.3023. AUD-USD remained stuck in sideways price action in the lower 0.79s, seeing only modest selling interest following the China trade data miss.