ASIA WRAP: Asia Equities Retreat As Trade Enthusiasm Fades


*NZD edges higher on RBNZ comments
*ASX Dec Futures test 6,650 support
*China looking for calm as 70th anniversary holidays approach



FX:

  • AUDUSD finished +0.04%, kept in a tight 15pip range all session with markets defensive on overnight US-China trade comments and bigger events to come in RBA's Oct-1 meeting
  • NZDUSD was the biggest gainer +0.4% after RBNZ Governor Orr said that he was "please with August [rate cut]" and how it was flowing through the system. Some might interpret his comments as being more hawkish come November. 
  • USDCNH was fairly unchanged -0.03% as China nears its 70th anniversary holidays. 
  • USDJPY tests 107.6 support having faded last night's relief rally, -0.14%. 
  • EURUSD and GBPUSD both drifted higher in Asia +0.11% and +0.02% on little news. 
  • USDCAD is softer -0.12% with Canadian 10y yields stronger +4bps overnight. 
  • Elsewhere, US EMs were mixed with USDZAR outperforming +0.5%. 

Equities:

  • ASX opened higher but almost immediately retreated in line with other Asian equity indices as traders curbed trade enthusiasm that propped up risk sentiment overnight. 
  • ASX cash fell -0.5% while Dec Futures finished at 6,661 looking to test 6,650 support. Afterpay (APT.AX) pulled back -1.3% after last night's enormous surge.
  • CSI is -0.5% at time of writing while Nikkei Futures are higher +0.3% on a slightly weaker Yen. 
  • S&P 500 futures edged lower -0.13%. 

Fixed Income:

  • AUS 10y yields (-4bps) and US 10y yields (-4bps) ticked lower as US-China trade optimism faded.

Commodities:

  • Commodities price action was steady on a quiet Asia session.
  • Gold Spot +0.4% closes above the US$1,500. 
  • Brent crude futures were little changed -0.3%, returning to normal volatility, following Saudi's quick response to drone attacks a fortnight ago.



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