ForexLive Asia FX news wrap: DOGE +10% on Musk tweet

Forex news for Asia trading for Monday 22 February 2021  

• The RBA says it won't be hiking the cash rate for three years. As if.
• The reflation trade and higher yields tug of war continues in Asia FX trade
• RBNZ monetary policy meeting 24 February - preview
• Fed Chair Powell will be speaking this week ... is he worried about rising UST yields?
• China - Dalian iron ore limit up
• S&P has raised New Zealand's credit rating to AA+ from AA
• PBOC sets USD/ CNY reference rate for today at 6.4563 (Friday's mid-rate setting was 6.4624)
• FX option expiries for Monday February 22 at the 10am NY cut
• Goldman Sachs bump its oil price forecast higher still - Brent projection up $10 a barrel
• AUD, NZD edge higher, copper futures (COMEX) hit highs last seen in 2011
• More from China on US relations - wants 'unreasonable' tariffs removed
• China's Wang Yi says root cause of strained US-China relations was previous US admin
• A senior Chinese official will be speaking on US-China relations at the top of the hour
• Japan data - January Services PPI -0.5% y/y (expected & prior both -0.4%)
• South Korea first 20 days of February exports +29.2% y/y per working day
• The US FAA has issued an emergency directive over Boeing 777 / Pratt & Whitney incident
• Japan puts the brakes on planes with Pratt and Whitney 4000 engines flying in its territory
• Fitch has affirmed Australia rating at AAA and outlook negative
• UK media report its government is considering having Facebook pay for news content
• White House supports studying the merits of a financial transaction tax (stock trading tax) after GameStop frenzy
• UK PM Johnson to announce all schools will reopen March 8
• Australia to take measures to stop coins being used by drug traffickers
• Elon Musk tweets, DOGE rises 10%
• NZ shadow RBNZ board says there is little need for monetary policy change
• China 1 and 5-year LPR were set at 3.85% and 4.65% over the weekend. As expected and unchanged.
• Monday morning open levels - indicative forex prices - 22 February 2021
• The FX market has been noisy this year but there's a signal
• No rest for bitcoin on the weekend as it roars to $57,000

Surging iron ore and copper prices again here to open the week, alongside commodities more generally. Currencies AUD, NZD, CAD, GBP all gained with the 'reflation trade' against the US while yen and CHF 'havens' were weaker. Until rising UST yields took the steam out of the afore-mentioned rising currencies that is. AUD, NZD, CAD and GBP all retraced against the dollar. US overnight (Globex) equity index futures also lost ground.

The moves in EUR/USD were of the 'lite' variety with a small 10 point (or thereabouts) gain for the session before it was all given back.

Fitch affirmed Australia at AAA, S&P raised NZ to AA+. South Korean February exports rose at an astonishing rate (first 20 days of the month).

Further on the Australian dollar front, the Reserve Bank of Australia waded into three-year Australian government bonds today, buying to drive the yield the back towards its 0.1% target in the face of rising yields globally. It was the first time in around 2 months the RBA had bought 3 years. As I post the yield remains a few basis points above 0.1%.

Bitcoin slid from its weekend high above US$58K. Fanboi favourite Elon Musk tweeted some gibberish on DOGe, which saw an instant 10% gain for the crypto. The 'gap' was filled and its consolidated at a higher price. 

First-time DOGE chart for the wrap: