ForexLive Asia FX news wrap: Positive noises on a US Congress deal

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 24 March 2020

It was a huge surge for global equities during the timezone here today, and similar for currencies against a hapless USD, with a drip-feed of encouraging murmurs out of the US Congress on the prospects for a deal on the coronavirus economic relief package.

Mnuchin and Schumer wheeled-and-dealed to get a fiscal boost agreed to. The total of the package could be up to around 2.5 trillion USD. There will not be a vote until Tuesday (US time) according to latest chatter.

Currencies were higher against the US dollar nearly across the board (certainly for the majors), with AUD and NZD stand-out gainers. AUD/USD is up more than a big figure since early in Asia.

There were other stimulus measures bandied about, from South Korea, Japan and New Zealand (to name just three) as well as continued liquidity injections and QE actions from regional central banks to add further fuel.

Economic news, on the other hand, continued to be negative, as was further news of US cities going into lockdown as well as the whole of the UK. The potential US Congress package outweighed it all though. Also of note, US President Trump gave a White House press briefing on the virus, flagging a lifting of social distancing measures, perhaps as soon as in two weeks, despite the still exponential growth of cases in the US (testing is still restricted in the US).

Regional equities as I post ... some face-ripping rallies.

  • Nikkei: +6.12%
  • Hang Seng: +3.58%
  • Shanghai: +1.48%
  • ASX: +2.12%

Circa 10% gain for the Nikkei since the lows on the 19th:

Forex news for Asia trading Tuesday 24 March 2020.

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