For the time being, markets remain calm, keeping the dollar relatively stable while the Aussie and the kiwi are losing amid a weak yuan. The yen is also trading down as bond yields try to recover their losses. The important news for the moment is that the inverted yield curve is a reality that markets will soon not part with.
Other news from China included an unwavering publication by the State Council on efforts to boost consumption that was not well received. Nothing, for example, to raise salaries.
The Australian dollar is down for the session, weighed down by sentiment in China and also by poor construction data. There are still only a few taps down, as well as NZD / USD.
USD / JPY is up a few taps. EUR / USD is slightly changed, but down with a few ticks, cable is also down a few pips in the negative direction. USD / CAD hit a fresh peak in US trade, along with lower AUD and NZD.
Looking ahead, sentiment risk remains a key focus for investors and will drive cash flow, so we remain alert for potential trading news throughout the day.
As for the economic news for the session ahead, we expect the consumer climate in Germany at 09:00. The report measures the levels of consumer confidence in economic activity. This indicator falls in the region as the country's economy continues to suffer this year. The negative news here is expected, but may still affect DAX.
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