ForexLive Asia FX news wrap: USD loses some ground

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Wednesday 20 January 2021

Another session of slow and little-impactful news in Asia but nevertheless small movement for currencies against the USD. Currencies are broadly stronger, although ranges are not large.

Euro is up against the USD but has been an under-performer in light of a Bloomberg piece on ECB YCC (see bullets above). 

AUD/USD tracked higher to circa 0.7725 (GVP, NZD, CAD all higher also) but has dipped a few points from there coinciding with comments out of China opposing US statements on Xinjian (see bullets above) and previous highs for the pair in the region of 0.7720/25 (short-term highs).

The PBOC added the most cash to the country's financial system today in 4 months to help assuage any liquidity constraints with tax payments due (19 to 22 January). The 7 day repo rate climbed for a 6th day to 2.5% and its highest since mid-November last year.

And, a heads up - US President Biden will be issuing executive orders from 5.15pm local time (2215 GMT). Indications have already been given he will be cancelling Keystone but there could be other day-one moves pending also. 

Forex news for Asia tradingfor Wednesday20January 2021

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