New Zealand ANZ Business Confidence (Aug): 15.5 (prev 16)
New Zealand ANZ Activity Outlook (Aug): 33.7 (prev 31.4)
New Zealand M3 Money Supply (Jul, YoY): 6.30% (prev 5.90%)
China Westpac/MNI Consumer Sentiment (Aug): 111.5 (prev 114.0)
UK GfK Consumer Confidence (Aug): -7 (est -8, prev -12)
UK Lloyds Business Barometer (Aug): 16 (prev 29)
South Korea Industrial Production (MoM, Jul): 1.40% (est -0.60%, prev rev to -0.40% from -0.20%)
South Korea Industrial Production (YoY, Jul): 1.60% (est 0.40%, prev 0.80%)
PBOC fixes yuan at 6.6908 (vs. prev fix 6.6812, prev close 6.6820)
Yuan fixed at lowest levels vs the USD since 20/Jul –BBG
The US Dollar retraced some of its recent gains as risk appetite improved. The New Zealand Dollar was the best performing currency overnight and NZD/USD rallied from 0.7205 to a high of 0.7255. AUD/USD followed it higher and rose from 0.75 to 0.7530. Meanwhile, the Canadian Dollar remains under pressure as Oil prices continue to decline. USD/CAD declined slightly in Asia, but found good support at 1.3080.
USD/JPY remains well bid and the risk-on sentiment is providing it with some additional support. The pair traded as high as 103.22 overnight, a fresh one-month high. With 103.00 resistance cleared, the next level to watch is 104.00, followed by 105.00/20.
EUR/USD was quiet as usual, trading in a 1.1135-60 range. Meanwhile, GBP/USD rallied from 1.3065 to a high of 1.3115 after the Tokyo open.