This morning, markets have a bias towards the safe havens of the Japanese yen and Swiss franc as concerns surrounding emerging market contagion increases.
The USD/CHF is slipping back lower following Tuesday’s rally. The 0.9700 is level is holding as support for now though. The EUR/CHF is dropping after three days of gains. The USD/JPY is slightly lower after the 111.50 resistance level is rejected.
The dollar index itself is making gains after losses yesterday.
The EUR/JPY and EUR/USD are on the back foot, with the EUR/GBP stable after yesterday’s Brexit induced volatility.
The GBP/JPY is only slightly on the back foot after solid Brexit and services PMI gains yesterday.
The Australian dollar continues to struggle though on China trade fears, with the AUD/USD set to test lows not seen since 2016. This comes despite better than expected trade balance at 14.30.
US ADP non farm employment change is at 13.15.
US ISM non-manufacturing PMI is at 15.00.
FOMC member Williams speaks at 15.00 as well.
US crude oil inventories are at 16.00.
SNB governing board member Zurbrugg speaks at 17.30, with RBC governing council member Wilkins speaking at 19.30.
The Australian dollar continues to struggle in the face of emerging markets stress and China trade fears. At the same time, interest in safe havens is increasing.