The risk-off sentiment seeped back into Asia this Thursday after the
US Treasury listed China on the watch list of currency manipulators,
sending the Chinese Yuan to yearly against the US dollar alongside a
sell-off in the Chinese equities.
Meanwhile, the US dollar
consolidated the overnight gains on hawkish Fed minutes, keeping most
majors under pressure. However, the Aussie bucked the trend and rallied
above 0.71 handle following a sharp drop in the Australian jobless rate
that outweighed the drop in the Aussie business conditions and
confidence data. The USD/JPY´s upside was capped by risk-aversion,
despite slowing Japanese exports doing little to negatively impact the
Yen. The Kiwi traded better bid, finding some support from the rally in
the Aussie and oil-price recovery.