Asia FX Handover 21st March 2019
FOREX.com March 21, 2019 1:08 AM
A snapshot view of currency moves throughout the Asia session, ahead of the UK open.
- Whilst FX ranges remain low, USD is today’s weakest major as markets continued to ‘pass the buck’ following yesterday’s dovish FOMC meeting. A stronger CNY fix saw USD/CNY tough its lowest level since July 2018. And, with yields lower and calls for a cut rising, it brings into question dollar's fate.
- AUD and NZD were today’s strongest majors, given a tailwind by economic data and of course a flailing greenback. AUD/USD hit a 3-week high when unemployment fell to 4.9%, its lowest level since 2012. The lower participation rate is arguable a key factor, yet anti-dollar sentiment allowed markets to also look past weaker employment growth.
- NZ’s quarterly GDP beat expectations, yet growth remains beneath RBNZ’s target. Still, the weaker dollar environment allowed NZD/USD to tap a 6-week high, after the kiwi broke out of its coiling formation yesterday. However, we note that NZD exceeded its average range at resistance.
- Index futures rise in tandem, gold hits a 3-week high and WTI cautiously extends its gains.
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