ForexLive Asia FX news wrap: AUD & NZD up on 2018’s first FX trading day

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 2 January 2018

Weekend:

The new year holiday on January 1 meant the forex markets only really got active on day 2 - today. Just a note to begin, though, many forex market traders will be taking this week as part of an extended break, which will mean liquidity won't really be back to 'normal' until next week. Just something to be aware of.

The Australian and New Zealand dollars were standouts on an otherwise subdued sort of session. AUD/USD has popped itself above 07830, with a better Chinese PMI (the private survey Caixin) adding to some short covering ahead of and above the recent high (late last week) circa 0.7825. Along with the PMI helping the AUD are rates edging a little higher (the 10 yr rate spread hits its highest since early in November 2017). NZD/USD was not left behind, it gained to above 0.7110.

EUR, GBP, CHF and yen are little changed against the USD to open the week, none are too far from late Friday trade in the US.

The mid rate for USD/CNY was sent to its low since early September by the People's Bank of China setting today; the bank did not inject funds via open market operations either (for the 7th business day in succession). The Bank is getting a jump on what is likley to be a year of slightly tighter financial conditions in China (at least while the economy holds a steady rate of growth and does not slip too much).

Bitcoin has traded circa mid-1300s (USD) on the session here after an early attempt higher:

And is getting a bit of a chop as I update ...