Asia equities head into month/quarter-end marginally positive as the regional bourses and U.S. equity futures build upon the flat performance stateside. However, gains capped as traders digested the Chinese PMIs, which came slightly above the consensus at 50.9 vs 50.8 expected. It persisted high on the 50-point line that separates growth from contraction monthly as Chinese manufacturers are fighting with new obstacles from costly commodities to global supply chain bottlenecks. On the radar for the coming weeks, concerns continue scaling in the Chinese bond markets as increasing bond yields leads to fears of a rise in defaults.
As virus woes heightened anxieties in a market already on edge ahead of U.S. jobs data seen as crucial to the Federal Reserve’s monetary policy outlook, Alice Springs in Australia has entered a three-day lockdown. This follows lockdowns affecting key areas including Sydney, Brisbane, Perth and Darwin. Month/Quarter end flows are the main drivers for choppy price action as traders enter on the last day of trading. Today, traders could see some volatility in the F.X. complex as participants from different fronts will be adjusting their funding needs in the USD space. Yesterday the Greenback edged higher during the start of the U.S. cash session.
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© 2019 High Leverage FX - All Rights Reserved.