ForexLive Asia FX news wrap: $2tln Biden stimulus flagged, yields respond
Read full post at forexlive.com
Forex news for Asia trading
for Thursday
14
January 2021
There
were sharp moves in Asia today on the news that new (soon to be)
President Biden’s stimulus plan could be in the order of $US2tln,
whereas as previous expectations had it pegged around $1.3tln.
aud/usd ticked just a few points higher as the news hit but the
pattern has been for rising yields on optimism over relief to boost
the USD and that response soon prevailed. Gold was heavily hit, down
from around $1850 to lows circa 1830. A few moments later FX followed
suit, dropping pretty much across the board against the USD on
the bonds
sell-off.
As
I post there has been some retracement of the USD moves, NZD and AUD
showing
some resilience.
In
China, the
PBOC again
set
the onshore yuan weaker than expected today, not
by as much as on Wednesday but enough to raise the suspicion that the
Bank is now more actively pushing back against yuan strength.
