ForexLive Asia FX news wrap: ‘Risk’ rises … retraces

Forex news for Asia trading on
Wednesday 1 December 2021

Various of the risk markets
rallied during the Asia session. The Australian and New Zealand
dollars have been outperforming, as I post both have managed to
retrace their ‘Powell’ falls during US trade (see the US wrap for
the details on, and links to, Powell’s pivotal testimony). US
equity index futures are up on the (Globex) session so far also.
Regional equities are mainly higher alongside.

& GBP are both not much changed against the USD while yen and CHF
are both a touch weaker against the dollar. CAD gained, helped by a
stabilising and recovering price for oil after the US session further

the data front, we had not-as-bad-as-expected Q3 GDP from Australia.
The data showed, as shown in estimates, a Q3 lockdown-impacted contraction (see
bullets above) for the q/q while the y/y was up more than expected.

China we had the November update for the privately-surveyed
manufacturing PMI (i.e. from Caixin/Markit) which slipped into minor
contraction. It does not get any more minor than 49.9 (see bullets
above)! Of note from China today was a big jump in reported COVID-19
cases. Given China’s hair-trigger response to rising cases we are
likely to see a swift imposition of restrictions in affected areas,
with a risk this damages both Chinese economic recovery and perhaps
further disrupts
supply chains. Meanwhile, offshore yuan (CNH) hit its highest against
the USD today since early June this year. 

Powell speaks again today, will be joined by US Treasury Secretary Yellen:

Forex news for Asia trading onWednesday 1 December 2021


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