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FOREX-Yen, franc gains on trade doubts, unrest; Aussie tanks

Published 14/11/2019, 09:27
FOREX-Yen, franc gains on trade doubts, unrest; Aussie tanks
USD/JPY
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USD/CHF
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DXY
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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee

LONDON, Nov 14 (Reuters) - The Japanese yen and the Swiss

franc led gains against a broadly weak greenback on Thursday as

weak Chinese data and concerns about whether Beijing and

Washington can reach a trade deal prompted investors to seek

shelter in perceived safe-haven assets.

The Australian dollar was the only currency to buck the

broader market trend after weak domestic employment data raised

concerns that the central bank might have to loosen policy again

in 2020, in stark contrast to its counterpart in New Zealand.

"Increasing signs of unrest in Hong Kong and Latin America

coupled with the uncertainty around the trade talks is keeping

the risk-off sentiment well and alive in FX markets," said Lee

Hardman, a London-based currency strategist at MUFG.

Against the dollar JPY= , the yen edged up 0.1% to a

nine-day high at 108.70 yen. The Swiss franc CHF= rose 0.2%

versus the greenback.

Adding to pressure on risk appetite, Chinese retail sales,

industrial output and investment data were weaker than expected,

sending the Australian dollar, already knocked by soft local

employment data, to a one-month low.

U.S.-China trade negotiations have 'hit a snag' over farm

purchases, with Beijing not wanting a deal that looks one-sided

in favour of the United States, the Wall Street Journal reported

on Wednesday, citing people familiar with the matter.

An agreement last month between the two economic powers to

sign a "phase one" pact to end their trade war boosted optimism

in global financial markets, lifting the yuan and other

risk-sensitive currencies.

The Swiss franc has been particularly strong this week,

outpacing even the gains notched by its Japanese counterpart on

some bets that the Swiss National Bank has stepped back from its

currency interventionist approach.

The franc traded at 1.0880 per euro EURCHF= , just below

Wednesday's peak of 1.0879.

The Australian dollar was down more than a half percentage

point to its lowest levels since mid-October at $0.6798 AUD=D4

after the weak data.

The broader dollar index .DXY edged 0.1% lower at 98.30

from a one-month high of 98.45 tested in the previous session.

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