Morning Update – 14/09/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a rather quiet session even as US yields continued to bounce aggressively off the recent lows with the S&P closing up 0.08% (unchanged really) but despite the rally in USDJPY extending, the Nikkei closed down 0.25%. Elsewhere in FX markets, Antipodean currencies were the biggest movers overnight. AUDUSD appreciated 40 pips surpassing the $0.80 mark and reaching a high of $0.8016 after Australia had a significant jump in employment data. The data showed Australia had added 54.2k jobs more jobs to the economy compared to the 20k expected, both part time and full time employment showed growth. NZDUSD also strengthened 0.2% overnight. Yields on the Australian 10-year note and JGBs trended higher up 5bps and 2bps respectively. Gold continues its retreat from a 12-month high last week trading at its lowest since August at $1320 per ounce. CNH it still the focus in EM after it continued its slide against the USD overnight. A deluge of data on China came in lower-than-expected, retail sales came in at 10.1% compared to the 10.5% expected. For the third day in a row USDCNY was fixed higher, this time by 83pips to 6.5465. An NBS spokes-person commented on the CNY appreciation saying that it shows a steady China economy and will help companies enhance ability to weather FX fluctuations. Ahead today we have both the BoE interest rate decision and US CPI as the main events But we also have French CPI (final revision) and the Swiss central bank meeting.. Good luck.