ForexLive Asia FX news wrap: US 10 yrs bounce

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Friday 26 February 2021

Asia bonds joined the global rout in early trade, as did regional stock markets, helping to propel the US dollar to add to its Thursday (US time) gains. Also of assistance to the prevailing mood resulting in the stronger US dollar was a US airstrike in Syria against infrastructure used by Iranian-backed militia. The strike was in response to Iranian attacks on US interests in Iraq, most recently last week.

The S&P500 emini stock index futures contract fell further also, but has staged a rebound following the news the US Senate will not consider the $15 Biden minimum wage plan (part of the President's coronavirus economic relief package) - a buy the fact response it appears.

As the morning in Asia progressed a bid emerged for US 10yrs, taking the price well off rout lows and translating into a small bounce for currencies against the dollar. As I post EUR/USD is net little changed on the session while AUD, NZD, GBP are all circa mid of their respective ranges. Of assistance to the AUD bounce was the Reserve Bank of Australia buying 3-year bonds (an effort to send yields to their target of 0.1%), the buying was especially notable as the RBA schedule for these operations is on Mondays Wednesdays and Thursdays. USD/CAD is little changed on the session also. 

With all this USD/JPY traded weaker on the session, giving up 50+ points from an early high circa 106.40

On the data release docket today, Japanese retail sales (January) slumped again, the state of emergency impacting negatively while industrial output rose for the first time in 3 months. Australian private credit grew, housing still leading the way with investor credit moving into positive. 

Bitcoin lost ground during the session, hitting as low as circa $46K.

Forex news for Asia tradingfor Friday26February 2021

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