Forex news for Asia trading on Tuesday 26 October 2021

It was a day of not a lot of notable news nor data. The Australian dollar chopped around while overall gaining ground while USD/JPY was a bit more of a steady move upwards. Neither of the ranges for these two pairs was overly large, but on a session so far where nothing much has been happening in the majors they were notable. Put them together and the move for AUD/JPY is better.

The Australian dollar did appear to be pushed around a little by the moves in iron ore futures in China (futures on the Dalian exchange), which opened higher but slipped into negative, roughly corresponding with AUD/USD high and then its dip back towards the middle of its range. Some of you may be thinking correlation is not causation, rightly so, but apart from the iron ore moves all I can suggest is 'more buyers than sellers' (which'll annoy a whole other bunch of folks ;-). AUD/NZD rose on the session and with Australian inflation data due tomorrow (preview post above) may suggest a degree of further unwinding on this cross ahead of potentially higher CPI from Australia and perhaps an RBA rethink on its persistent 2024 guidance. I'm not holding my breath on this.

USD/JPY is making a fresh high for the session as I prepare this post, nudging above 113.90. Yen looks to be weighed on ahead of Japan's election at the end of this month. Elon Musk went as far as to tweet out his inflation view (see bullets above) for the US - higher. US inflation, and corresponding moves in US rates, are underpinning USD/JPY (this is not news to anyone).

Forex news for Asia trading onTuesday26October 2021