ForexLive Asia FX news wrap: Xi and Biden phone call, the first since February

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading on Friday 10 September 2021

The leaders of China and the US spoke for the first time in going on 7 months today, the readout from the US side said it was a 'broad, strategic discussion'. Those are the discussions you have when you can't agree on much I guess. There is more of the White House readout of the call in the bullets above. China's readout confirmed there was more disagreement than agreement.

'Risk' FX and equity markets liked the fresh dialogue when the news first broke. Regional equities had already been having a positive session (not all, it was mixed) prior to the news of the call breaking. Currencies though had been subdued. On news of the call AUD/USD, for example, popped circa 20 points to a session high just under 0.7385. EUR, GBP, NZD, CAD all added a few points also.

News flow otherwise was non-impactful. US President Biden had spoken during the US afternoon on his new coronavirus plan, in a nutshell mandating vaccinations for Federal employees (there are substantial 'nuances' in the mandate, its not as wide as might be thought) and vaccinations &/or tests for firms employing 100 or more people.

Data flow was also non-impactful (there was not much at all).

On the central bank front, check out the posts on Kaplan and Rosengren announcing they'd cease trading in individual stocks while running their respective Fed branches. 

Regional equities:

  • Japan's Nikkei -0.5%

  • China's Shanghai Composite +0.6%

  • Hong Kong's Hang Seng +1.6%

AUD response to the phone call news (red arrow):

Forex news for Asia trading onFriday10September 2021

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose