Forex news for Asia trading - Wednesday 15 July 2020

A report out of the US after the local stock market close on Moderna's potential vaccine to prevent Covid-19 giving promising results (in all 45 patients in an early stage human trial) was enough to support risk trades across currencies and equities (China equities excluded, I'll come back to that).

The vaccine was reported to have produced a "robust" immune response in all patients the early stage human trial, according to data published in the New England Journal of Medicine (note this is a reputable, peer-reviewed journal).

The USD saw losses almost across the board; AUD, EUR, NZD, CAD, GBP all higher, but with some retrace since. S&P futures also higher in Globex trade.

Other news on the session was again out of the US with Trump signing a bill, and also an executive order, sanctioning China for its moves on Hong Kong. Later, into the morning in China, China responded by saying it would in turn sanction US officials and entites in response. The tit-for-tat developments weighed on Chinese equities. As I post the Shanghai Composite has given back its earlier gains and traded lower.

The PBOC injected one-year liquidity today, partially offset by maturities. We await the Bank of Japan policy announcement.

Forex news for Asia trading - Wednesday 15July 2020