Asia bourses started the session trading positive after a mixed day on Wall Street. The major regional equity benchmarks opening higher were driven by notable outperformance in Japan on FX effects.
The Dollar Index teased on both sides of 90 level, and the Japanese Yen rallied over 50bps amid favourable interest rate differentials and touted month-end buying. The Chinese Yuan saw little reaction to some punchy comments from the PBoC. It noted the Yuan cannot be used as a tool to stimulate exports via depreciation or offset the impact of rising commodity prices via appreciation. A crackdown on FX would be the latest from the PBoC after cracking down on both commodities and cryptocurrencies. On the fiscal front, the White House is to unveil a new USD 6trln budget plan today. Traders are now watching Friday’s Personal Consumption Expenditures data.
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© 2019 High Leverage FX - All Rights Reserved.