Asia FX Handover - 20th March 2019
Matt Simpson March 20, 2019 5:22 AM
A snapshot view of currency moves throughout the Asia session, ahead of the UK open.
- The USD spiked early-Asia on reports China were pushing back on US trade demands, weighing on commodity prices and sending AUD/USD to a 4-day low (Iron ore futures -4% on the session, also not helping). That said, AUD was able to pare some losses as rumours that China were considering a rate cut surfaced, making NZD is currently the weakest major.
- Chinese equities are broadly low on the latest trade woes, US Index futures trade cautiously lower ahead of today’s Fed meeting.
- Overall, FX volatility remains low (which is typically the case ahead of a Fed meeting) although DXY is trying to break a 3-day losing streak. USD/JPY continues to coil within a daily triangle, and gold is hovering around $1304.90 having printed a potential bearish hammer yesterday. US10Y seems content around 2.6% (for now) but, perhaps this just the calm before the storm.
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