ForexLive Asia FX news wrap: AUD and NZD higher

News

Forex news for Asia trading on
Monday
21
June 2021

It was an active opening to the
week with follow through moves from the US equity market drop on
Friday hitting Japanese stocks particularly hard. At the Tokyo lunch
break:

  • Nikkei
    is down 3.4%
  • TOPIX
    is down 2.5%

As
I post there is so far no sign of the Bank of Japan buying (TOPIX)
ETFs. They last bought back on April 21.

The
risk-off move … well it wasn’t a risk-off move at all. AUD and
NZD both moved substantially higher (for an Asian range day) with
AUD/USD up around 40 points from its lows while NZD/USD up a similar
amount circa +40 points. Fresh news and data were light only.  

EUR
didn’t do too much, yen and GBP added on a few points against the
big dollar. Oil traded higher still, CAD added
a few points. .

US
yields dropped during
the
Asian session here, the 10 year and 30 year USTs to lows not seen
since early March and February respectively. Dropping yields gave
gold a bit of a spark, up a little more than 10USD from its low.

The
People’s Bank of China set its one- and five- year loan prime rates
at unchanged levels for the 14th month in a row.

Bitcoin
had an active weekend, dropping under $33,500 at one stage before
staging a solid rally back above $36K. Its circa $35K as I update
though. Chinese tightening of regulation of mining and transactions
continues to ratchet higher (see bullets above). 

Gold eked out a small bounce:

And, something the equity longs may not be too happy about. Bullard is speaking again today during the US session. Bullard is head of the Atlanta Fed, on Friday his comments sent US stocks tumbling. NY Fed head Williams speaks also. 

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