The trend is your friend in trading this week. In FX, the Japanese yen has been the outright leader with the antipodean currencies struggling. The former owes to exhaustion on the part of buyers but also arguably some anticipation flows ahead of the BOJ next week. USD/JPY has taken quite the tumble since Japan intervened on 11-12 July. The pair is down well over 900 pips since the highs earlier this month.
As for the aussie and kiwi, they had been weighed down by pressure on the Chinese yuan. But Beijing looks to be putting a lid on USD/CNY for now, just under the 7.28 mark. The pair has now dropped back to 7.25 but domestic equities are…