Asia FX Handover - China Steps Back From Trade Talks | Bitcoin Plunges
Matt Simpson May 17, 2019 4:59 AM
A summary of news and snapshot of moves from today’s Asia session.
- Indices initially took their lead from the Wall Street bounce which saw the ASX200 hit its highest level since 2007. Yet Chinese equities turned lower with Bitcoin with no immediate driver at hand. Reports then surfaced that that China have “little interest” in trade talks with the US, and they’ve been playing “little tricks” (such as blacklisting Huawei).
- Bitcoin plummeted 7% nearer the end of the session during its worst session since February. Stopping just shy of $6900 (some exchanges quoted it a lot closer to $6000 at the session low), there’s plenty of time for it to hit double digits to the downside.
- Yield differentials continued to weigh weight on AUD/USD which sits below 69c, after seeing its lowest daily close since January 2016 yesterday. Keep in mind Australia’s federal election this weekend so we could see some gaps on Monday depending on the outcome.
- Narrow ranges for FX overall but NZD and EUR are currently the strongest majors and GBP is the weakest. Eyes are on EUR/GBP to see if it can rack up a 10th consecutive bullish close ahead of the weekend.
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