Asia FX Handover: Trade, Growth, Risk-Off

A summary of news and snapshot of moves from today’s Asia session.

  • Renewed concerns over trade and global growth saw risk-off sentiment extend its way through to Asia. Yet the theme appears confined to equity and bond markets.
  • Equity indices and futures are in the red, the US10Y hit its lowest level since September 2017 and the AU10Y fell below RBA’s cash rate for the first time since January 2015. Still, gold is struggling to catch a bid and is back below $1280 after failing to break above last week’s high. Crude oil has yet to find it footing and WTI has fallen to $58.50 a barrel.
  • NZ was initially the strongest major following a less-gloomy business outlook survey, with 8.5% of respondents expecting business to grow in 12 months (7.1% prior). Whilst outlook remains historically pessimistic, it’s gaining traction from its 10-year cycle low printed in August. CHF and AUD are currently the strongest major, JPY and USD are the weakest.
  • US treasury states that no major trading partner met currency manipulation criteria. Although they urge China to take necessary steps to avoid a persistently weak currency. Meanwhile a Chinese Communist Party newspaper warns that Chia is set to use a rare earths export ban to strike back in the trade war.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account