FX Update: The Australian dollar has traded firmer
FX Update: The Australian dollar has traded firmer and, to a lesser extent, the New Zealand buck. The gains came despite Chinese stock markets sputtering, although other equity markets across the Asia-Pacific region performed better, continuing the recouperation from last week's acute phase of risk-off positioning. AUD-USD printed a five-day high, at 0.6795, as did AUD-JPY, at 72.36. The minutes to the early-August RBA policy meeting were released without surprises, affirming its wait-and-see-easing-bias stance while repeating its view that the weaker currency will help exports and tourism. Among the other main currencies, there has remained a lack of directional impulse. EUR-USD has remained settled in the upper 1.1000s, holding below 1.1100, and USD-JPY has become anchored around 106.50. The dollar hasn't been much affected by U.S. President Trump's call for the Fed to cut rates by "at least 100 basis points". Fed's Rosengren pushed back against further rate cuts, saying that he is not convinced that slowing trade and global growth will significantly dent the economy. Overall investor sentiment is much less frayed that it was last week, with expectations for stimulus in major economies, along with Trump's partial climbdown in his trade war with China, assuaging recession fears.