[MARKET ANALYSIS] Antipodeans underperform following weakness in Chinese equity markets; G7 against USD trade muted

The underperformance of the Antipodeans highlights concerns about global demand, particularly with Chinese equities weakening and impacting commodity prices.

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[MARKET ANALYSIS] Antipodeans underperform following weakness in Chinese equity markets; G7 against USD trade muted

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  • DXY oscillates in a 99.09–99.15 range as markets digest a flurry of comments from President Trump.
  • EUR/USD and GBP/USD trade in tight ranges as markets await UK GDP and trade balance data, as well as final inflation prints from France and Spain.
  • USD/JPY holds onto Wednesday’s losses as the JPY sees some strength following reports of a new opposition party, which may compete with PM Takaichi’s party and make it harder for the prime minister to pass legislation. USD/JPY recorded its first down day since the first trading session of 2026.
  • Antipodeans underperform their G7 counterparts, weighed down by a pullback in metals and weakness in Chinese equity markets.
  • CNH strengthened slightly following the firmer-than-prior PBoC Yuan fixing.
Context

This dynamic suggests that risk sentiment may be shifting, which could influence the broader forex landscape as traders remain cautious, especially with key economic data pending from the UK and Europe. Given the strengthening CNH, this could also reflect localized support for the Yuan even amid broader market concerns.

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