Forex news for Asia trading on Tuesday 19 October 2021

There were across the board losses for the US dollar in Asia morning trade Tuesday with not much in the way of a clear fresh catalyst or catalysts. The data release agenda was bare with only Reserve Bank of Australia October meeting minutes featuring.

There was little to surprise in the minutes. The RBA sees economic growth returning in Q4 as the lockdowns of Q3 are coming to an end - nor surprise this. The Bank also continues to see only moderate inflationary pressure in Australia and little indication of wage growth growing anything more than in a subdued fashion - again nothing to surprise here. The minutes did make specific mention of not seeking to cool hot house price growth via higher rates as doing so would negatively impact the labour market - again this is not a surprise with macroprudential measures favoured. And, once again, the Bank said it expects conditions for a rate hike to not be present until 2024 at the earliest (ps. markets disagree with this, pricing a much earlier hike).

All-round quite dovish indeed. Which didn't stop AUD/USD from rising, and indeed as noted, all major FX rose against the big dollar.

Coal futures in China continued to surge to fresh record highs.

The onshore yuan extended its gains. USD/CNY below:

Forex news for Asia trading onTuesday19October 2021