ForexLive Asia FX news wrap: Weaker onshore yuan from the PBOC again

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Monday 12August 2019 

News and data flow was fairly light over the weekend and during Monday here in Asia. 

We had the usual Brexit headlines to give GBP a bit of impetus (although limited) - seeing GBP up from its late Friday levels early before losing its gains completely and then moving back to mid-range. All this in a high-low space of not much more than 30 points. 

Early moves were towards the yen and away from 'risk', AUD/JPY dropping early in the session here. There was no specific fresh news to pin the move on, I speculated it was some US political news, but just as a guess (Scarramucci post above). USD/JPY dropped under 105.35 before steadying around 105.50. AUd/USD lows were towards 0.6770 before recovering to new session highs circa 0.6795. NZD/USD followed a similar pattern (NZ saw losses on the NZ Treasury speculating negative rates were possible.). 

Forex news for Asia trading Monday 12August 2019 

Once again attention focused during the session on the People's Bank of China reference rate setting for USD/CNY. In a pattern that is becoming familiar the Bank lowered the value of the onshore yuan not as much as was expected. And, once again, offshore yuan gained on the announcement as did 'risk'. EUR/USD has ended the session a touch firmer, as has USD/CAD. Gold is little changed. 

Still to come:

  • FX option expiry for Monday August 12 at the 10am NY cut
  • AUD traders - Add these two important indicators to the agenda this week in Australia 
  • AUD traders - RBA speakers, jobs report coming up in Australia this week
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