Forex news for Asia trading on Monday 27 September 2021


A little local optimism and an apparent slight warming in the chilly US-China relationship was enough for the Australian dollar to steadily tick higher through much of the session. The leader of Australia's largest population state confirmed October 11 for a substantial path out of restrictions (ForexLive had this date posted in the hours preceding the confirmation giving us all a head start:


Late on Friday and hitting the news over the weekend was the news of a prisoner swap between Canada and China as the US reached an agreement with Huawei CFO (and daughter of the company's founder) Meng Wanzhou. Meng was allowed to leave her Vancouver mansion where she had been confined and flew back to China. Meanwhile, Canadians Michael Kovrig and Michael Spavor were taken out of their China jail cells and flown back to Canada. While relations between the US and China are still strained this is a positive sign. AUD, as a China proxy trade, seemed to like the news.

Oil traded higher following its Friday gains, benefitting CAD.

The People's Bank of China injected funds into the banking system again over the weekend and Monday. Its not unusual for liquidity to be added ahead of major holidays in China (national holidays begin from Thursday this week) and Evergrande ructions are an added impetus for inputting more cash into the system.

Speaking of the weekend, Bitcoin recovered much of its Friday losses over Saturday and Sunday and ticked a little higher on Monday Asia time as I post.

The election in Germany has not produced a clear winner, coalition negotiations are expected to stretch out into the weeks, if not month or more, ahead (see bullets above). Preliminary results have the SPD ahead of incumbent CDU/CSU in number of seats won but of course neither is close to a majority. As I post, in the 730 seat Buindestag:

  • SPD have taken seats 205
  • CDU/CSU seats 194

See the bolded German election post post above for a helpful summary.

Gold has had a $10+ rally through the session.


Forex news for Asia trading onMonday27September 2021