Forexlive Asia FX news wrap: USD is the strongest of the majors
Forex news for Asia trading for Thursday, 22 October 2020
- Covid data in the US trending the wrong way
- AUDUSD is the biggest mover in the Asian session
- South Korea central bank is suspected of buying dollars to curb Wons gains
- China's Shanghai composite index opens down -0.28%
- PBOC sets USD/CNY reference rate for today at 6.6502 (vs. yesterday's 6.6781)
- FBI: Russia, Iran have attempted to interfere with US election
- RBA Deputy Gov. Debelle does not make comments on monetary policy
- Fox news poll shows Trump gaining in Ohio, but Biden in the lead in other key swing states
- Bitcoin trades to the highest level since July 2019
- Pres. Trump: Does not see Pelosi Schumer doing the right thing for workers
- Some end of day US Covid statistics from Reuters
- Fed's Bullard: So far so good as far as Fed policy
- Govt of Canadian Prime Minister Trudeau survives parliamentary no confidence
- RBNZ Robbers: NZ well will prepared for Covid 19 challenge
- Pelosi spokesperson: Conversation brings us closer to being able to put pen to paper
- Major US indices close lower on the day and near the lows of the day
The USD advanced to start the new trading day and is ending as the strongest of the major currencies (see ranking below). The catalyst was increased uncertainty about a coronavirus deal being passed, although there is still hope. There is also some concern about Russian and Iranian interference in the US election which helped to weaken equities.
- fiscal policy could wait to the 1st quarter 2021,
- he sees rapid third-quarter growth continuing into the 4th quarter and 1st half 2021
- he said the US has made substantial progress in getting virus under control
- that daily fatalities per million at fallen to levels similar to accidental injuries (hmmmm)
- the end of the tunnel for the pandemic could lead to a boom
The US stocks ended yesterday's trading day on a down note with the major indices closing near session lows after giving up earlier gains.
The soft bias in stocks extended into the Asian session where the major indices traded lower. US stock futures were also lower although with the E-mini down -24.75 points.
The weakness in equities led to the safe haven flows into the relative safety of the US dollar and to a lesser extent, the JPY. The weakest currency was the AUD. The economic calendar was supposed to include NAB's quarterly business survey results for the 3rd quarter, but they were never released (in the 2nd quarter the index was down -15). It was a type of day.
The fall in stocks, and the rise in the USD, helped to push precious metal lower. The price of spot gold is trading down minus $10.59 or -0.55% to $1913.74. The low price reached $1910.85. Spot silver is also lower by minus $0.26 or -1.07% to $24.78. WTI crude oil futures are trading down -$0.30 or -0.75% to $39.73.