ForexLive Asia FX news wrap: UST yield subsides

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Monday 1 March 2021

The moves were early in the session here with currencies leading the way higher against the USD. AUD/USD gained more than 50 points from its Friday low, but trading higher were also GBP, NZD and even EUR. The reopening of trade in US Treasury's for the week (futures) saw yields drop back a little more, equity index futures gained. Of note then was Australian government bond-buying from the Reserve Bank of Australia, buying double the usual amount to drive Australian 10 years down more 30bps in yield. This aggressive action followed Friday's off-schedule buy of 3 year Australian government bonds by the Bank, further indicating their opposition to higher rates in the market. The AUD response to the intervention was basically nil though, the upmove for AUD came earlier, as already discussed. There was also little AUD response to data showing another strong rise in house price (CoreLogic monthly measure) and then housing lending up 44.3% y/y for a record high annual growth since 2003.

Data over the weekend from China showed a still expanding set of official PMIs, but at a slower rate. Monday data from China followed up with the private manufacturing PMI, also expanding at a slower rate.

USD/JPY hit a 6 month high today circa 106.70. Gold edged steadily higher to recover some of its losses on Friday US time. Bitcoin moved higher from lows just above $43K. 

Forex news for Asia tradingfor Monday1 March 2021

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