ForexLive Asia FX news wrap: AUD and GBP move higher

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading on Tuesday 1 June 2021

During the US holiday the USD lost ground with currencies higher pretty much across the board. There was some continuation of this move during the Asian timezone here today most notably for AUD and GBP which both added solid gains. I posted on moves from China to relax emission rules on steel production (see bullets above) which gave iron ore (and AUD) a boost. GBP didn't seem to need any news for its rally.

Yen, too, moved higher against the dollar, USD/JPY testing back towards its US time lows. The  People's Bank of China set its reference rate at the highest (for the CNY) since May 15 of 2018. 

On the data front we had plenty of manufacturing PMIs published for May out of Australia, China and across Asia, solid expansions indicated for many. Further data from Australia provided 'partial' indicators for Q1 GDP which is due tomorrow. Expectations are for around +1% q/q growth for the economy in the first quarter.

On the coronavirus front the news was not so encouraging, further restrictions continue in many Asian countries (see bullets above). On the other hand European countries are seeing some relaxation.

Gold and oil rose. Bitcoin pushed towards US$38K but has come back a little since.

We await the Reserve Bank of Australia policy decision and Statement from Governor Lowe due at 0430GMT:

Cable to its highest since April of 2018:
Forex news for Asia trading onTuesday1 June 2021

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