Forex news for Asian trading on January 21, 2021
- Reuters: US coronavirus deaths rise by 4332 on Wednesday
- China's CSI 300 index up 1.4% to the highest in a week
- Bank of Japan maintains policy at -0.1%
- China's Shanghai composite index opens up 0.22%
- PBOC sets USD/ CNY reference rate for today at 6.4696 (vs. yesterday at 6.4836)
- Option expires for Thursday's NY cut
- Australia employment change 50K vs. 50K estimate
- White House Press Secretary Psaki holds first press briefings
- Australia's consumer inflation expectations for January 3.4% vs. 3.5% last month
- Canada's Kenney: Bidens canceling of Keystone XL is a gut punch to Canada
- Japan trade balance for December ¥751 billion vs. ¥930.5 billion estimate
- As expected, Biden signs executive orders
- New Zealand net migration data for November 672 vs. 884 in October
- US private oil data shows a build of 2.5 million vs. estimate of a draw of -1.2 million barrels
A look at other markets outside forex shows:
- Spot gold is down $0.43 or -0.02% at $1871.41.
- Spot silver is trading up $0.05 or 0.20% at $25.89
- Bitcoin is trading down $569 and $34,334
- Japan's Nikkei is up 0.84%
- Australia's S&P/ASX is up 0.8%
- Shanghai composite index is up 1.34%
- US index futures have the S&P 500 up 0.3%. The NASDAQ 100 is up 0.63%
The Asian session's saw risk on flows after the sharp rise in US stocks yesterday, and follow through buying in the Asia/Pacific markets today.
Looking at the strongest to weakest rankings (see rankings above), the NZD and AUD are the strongest, while the USD and CHF are the weakest. The biggest mover is the NZDUSD which saw a 0.49% rise (USD down -0.49%).
A snapshot of the ranges and changes shows the USD trading near lows for all the major currencies (see chart below).
The JPY pairs are also mostly higher but well off the highs for the day, on the back of selling in the USDJPY later in the session. Today, the BOJ kept rates unchanged but did raise projections for inflation and growth in fiscal year 2021. On the negative sign, the reiterated the concerned about Covid and the risks associated with it.
In other fundamental news during the session Japan's trade surplus came in less than expected and ¥751 billion vs. ¥903.5 billion estimate.
Australia employment change came in right at the estimate of 50K (not a 1K more or less). The unemployment rate dipped to 6.6% from 6.8% previously.
Some technical levels going forward:
- EURUSD: The EURUSD extended above the 100 hour moving average early in the session at 1.2106 and is moving toward the 200 hour moving average at 1.21360. It will take a move above the 200 hour moving average to continue the trend and turn the bias more to the upside.
- GBPUSD: The GBPUSD moved above a swing area between 1.3670 and 1.3679 and looks toward swing highs between 1.3700 and 1.37177
- USDJPY: The USDJPY fell below its 50% retracement 103.489 of the 2021 trading range. The pair moved to the lowest level since January 7 at 103.326. The 61.8% retracement at 103.276 is the next downside target to get to and through for the sellers.
- NZDUSD: The NZDUSD (the biggest mover in the new trading day), cracked above a topside trend line near 0.7187, and has now moved above the 50% retracement of the 2021 trading range at 0.72052. The high price reached 0.72104. Stay above 0.7200 would be more bullish.
- AUDUSD: The AUDUSD moved above the high from yesterday at 0.77602 and has extended to 0.7776. The 0.7760 level is now close risk. The next target on continued upside momentum comes in at 0.77809 followed by swing highs from January 8 at 0.77977 and January 14 at 0.78045
Good fortune with the trading
