Forex news for Asia trading
for Thursday
25
March 2021

Weaker
currencies againt
the USD persisted in ealry Asian trade but we have had some
turnaround after the early soft trading with bounces from the lows
for EUR/USD, AUD/USD, NZD/USD and cable. USD/CAD has slid from its
early high. The yen lost some ground on the gain in risk currencies. ‘Risk’
benefited from a slightly improved (or at least less bad) tone in
Chinese equities (more on this to come below).

Oil
dropped away from its Europe/US timezone highs. There has been no
progress reported on freeing the ship blocking the Suez Canal but the
fears for oil supply dissipated as concern over demand dipping
on Europe (slow vaccine roll-out, rise in new virus cases largely
driven by the U.K. strain, tightening of restrictions) overtook.
Obviously the Suez developments are still ongoing.

Equities
in China weakened at the open but the worst of the declines were
reversed (HK and Shanghai are still in the negative just by not as
much as earlier) with some reports the ‘National Team’ in China
were in supporting stocks (unconfirmed). There was enthusiasm over a
point made on the newswires that US stimulus was good for Chinese
exporters (ie supportive of Chinese industry) although the enthusiasm
did seem to come a few hours after the report was first published and
tracked the bounce of Chinese stocks from their earlier lows.

  • Japan’s Nikkei +0.84%

  • China’s Shanghai Composite -0.1%

  • Hong Kong’s Hang Seng -0.4%

  • Australia’s S&P/ASX 200 +0.7%

Bitcoin has not managed to sustain any bounce during the session, close to its session lows as I post circa $52K

EUR/USD bounced from a 3 month low:

Forex news for Asia tradingfor Thursday25March 2021

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