ForexLive Asia FX news wrap: USD holds its ISM/Clarida gains

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading on Thursday 5 August 2021

ICYMI the US dollar had a big Wednesday during US time, dipping a little on a sad ADP jobs report and then posting large gains on a record high ISM services index and simultaneous comments from Vice Chair Clarida:

During the session here in Asia forex volatility and ranges have slumped, but the dollar has mainly held its gains. USD/JPY ticked a little higher, to just over 109.70 (its not far from there as I post). USD/CHF, too, extended a little higher. EUR and GBP have dibbled slightly lower against the dollar. On the other hand CAD, AUD and NZD have shown very small gains against the dollar for the session. CAD is performing well (relative to AUD and NZD, which both slumped on Wednesday US time against the dollar).

It was a light day for data, the Australian trade balance came in at a huge surplus (its 42nd month in a row of surplus), higher prices a strong contributor to export performance. This may be a short-lived phenomenon as Dalian iron ore hit a 4 month low in trading today. Payroll data from Australia was not so positive, the ongoing lockdown in Australia's largest population state and city (NSW & Sydney) is biting into jobs. Sydney has been in its lockdown for 6 weeks and registered its worst 24 hours in that time for new cases in today's numbers.

In other coronavirus-related news Japan is moving further towards wider states of emergency declarations as case counts stubbornly rise there also. China is locking down too, harshly, as China does, as case counts rise there (see bullets above for more on the COVID-19 news in the region).

USD/CAD 5 min candles:

cad chart 

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