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Asia Recap: AUD fights back early sellers after re-introduction of coal levies in China

FXStreet (Bali) - It was a fairly quiet affair in FX along Asian hours, with the Aussie being the worst performer, while the Euro managed to eke out the most gains, if only marginal.

AUD/USD extended its US losses by being paid as low as 0.8748 before a bounce in price took the rate towards 0.8770. NZD/USD consolidated in a tight range centered around 0.7860. USD/JPY saw little activity, with prices confined between 107.70 and 108.00. AUD/JPY saw some early selling pressure, sending the rate to a fresh low of 94.17 before a rebound to 94.50. EUR/USD had a brief drive above 1.27. GBP/USD saw an early spike but gave back gains to stabilize around 1.6120.

On the fundamental/macro space, AUD sentiment worsened after China decided to once again levy coal import tariffs, which will undoubtedly weigh on Australian miners.

In Japan, minutes of the BoJ monetary policy meeting provided no surprises to the market, as the Central Bank decided, by a unanimous vote, to continue conducting money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.

In Australia, home loans came below forecasts (0.1%) in August, with the actual at -0.9%, while investment lending for homes was also down to -0.1% in August from previous 6.8%.

Naoyuki Shinohara, deputy managing director of the IMF, crossed the wires, via Bloomberg, saying that strong dollar triggering yen weakening, which is part of natural FX market moves. While ECB governing council member and Bundesbank head Jens Weidmann, speaking in Washington, said that Germany is not going to meet growth targets by year-end initially expected.

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