🇨🇭LIVEDESK: FX Flows

[PRE NY SESSION]

• Risk is rather soft, with China Tech stocks getting hit on more regulatory concerns, though the key driver is signs of softer activity, with the latest Fed Beige Book noting a deceleration of growth, with drags from face-to-face activities like dining out, and tourism etc. - so the assumption this is related to Delta variant concerns.

• Messaging from the Fed is a bit mixed, but the hawks are vocal, with Kaplan taking up an October taper start. Fed taper in a softer growth environment is going to be a challenge for emerging markets, and KRW is trading poorly, with the reliance on exports and concerns about anti-trust measures a drag on equities there.

• Overall net USD flow is flat. The only standout is macro net selling of AUDUSD. This may relate to the confirmation that Sydney's lockdown will continue until a 70% vaccination rate is achieved (expected in October), although I think this was widely anticipated.