The dollar was down on Thursday morning in Asia, moving towards the middle of a range that it has stuck to for the past month. Investors now look to the U.S. Federal Reserve’s policy decision, due to be handed down next week, for further clues on when the central bank will begin asset tapering.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.05% to 92.485 by 11:57 PM ET (3:57 AM GMT).
The USD/JPY pair inched down 0.05% to 109.31.
The AUD/USD pair edged down 0.14% to 0.7324. Australian jobs data released earlier in the day showed that the employment change contracted by 146,300, while the full employment change contracted by 68,000, in August. The unemployment rate was 4.5%.
The NZD/USD pair edged up 0.15% to 0.7114, with New Zealand’s GDP growing a better than expected 2.8% quarter-on-quarter and 17.4% year-on-year in the second quarter.
The USD/CNY pair inched up 0.04% to 6.4347 while the GBP/USD pair inched down 0.02% to 1.3834.
Gold was up on Thursday morning in Asia, with investors continuing their wait for clues on when the U.S. Federal Reserve will begin asset tapering.
Gold futures inched down 0.05% to $1,793.85 by 11:34 PM ET (3:34 AM GMT) after falling 0.6% on Wednesday, the biggest one-day decline in a week.
The Fed will hand down its latest policy decision next week, which could provide clues on the central bank’s timeline.
Across the Atlantic, European Central Bank Executive Board member Isabel Schnabel said on Wednesday that real interest rates are puzzlingly low globally and that investors may be overestimating the economic impact of COVID-19’s Delta variant.
Several countries in Asia Pacific released data, starting with Japan. Trade data released earlier in the day showed that exports grew 26.2% year-on-year and imports grew 44.7% year-on-year in August. The trade balance was at a deficit of JPY635.4 billion ($5.8 billion).
Australia released jobs data that showed the employment change contracted by 146,300, while the full employment change contracted by 68,000, in August. The unemployment rate was 4.5%.
European stock markets are expected to weaken Thursday, following Asia lower amid slowing growth and increasing regulatory concerns.
At 2:10 AM ET (0610 GMT), the DAX futures contract in Germany traded 0.1% lower, the FTSE 100 futures contract in the U.K. fell 0.3%, but CAC 40 futures in France climbed 0.3%.
European markets have received a weak handover from Asia Thursday, with the Hong Kong benchmark index, the Hang Seng, falling nearly 2%. Casino shares extended the previous day’s rout as the Chinese government sought to tighten its grip on Macau, the world’s biggest gambling hub.
Additionally, troubled Chinese real estate giant Evergrande stock slumped around 10% after its main unit applied to suspend trading of its onshore corporate bonds, raising fresh worries of default risks.
Economic data from China released Wednesday pointed to the world’s second largest economy suffering from slowing growth in August thanks to Covid-19 outbreaks and supply disruptions.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services