ForexLive Asia FX news wrap: $2tln Biden stimulus flagged, yields respond

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Thursday 14 January 2021

There were sharp moves in Asia today on the news that new (soon to be) President Biden's stimulus plan could be in the order of $US2tln, whereas as previous expectations had it pegged around $1.3tln. aud/usd ticked just a few points higher as the news hit but the pattern has been for rising yields on optimism over relief to boost the USD and that response soon prevailed. Gold was heavily hit, down from around $1850 to lows circa 1830. A few moments later FX followed suit, dropping pretty much across the board against the USD on the bonds sell-off.

As I post there has been some retracement of the USD moves, NZD and AUD showing some resilience.

In China, the PBOC again set the onshore yuan weaker than expected today, not by as much as on Wednesday but enough to raise the suspicion that the Bank is now more actively pushing back against yuan strength. 

In US politics the House voted to impeach Trump once again. There will now be a trial in the Senate at a start date yet to be confirmed. 

Forex news for Asia tradingfor Thursday14January 2021

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