Forex news for Asia trading on
Tuesday
26
October 2021
It was a day of not a lot of
notable news nor data. The Australian dollar chopped around while
overall gaining ground while USD/JPY was a bit more of a steady move
upwards. Neither of the ranges for these two pairs was overly large,
but on a session so far where nothing much has been happening in the
majors they were notable. Put them together and the move for AUD/JPY
is better.
The
Australian dollar did appear to be pushed around a little by the
moves in iron ore futures in China (futures on the Dalian exchange),
which opened higher but slipped into negative, roughly corresponding
with AUD/USD high and then its dip back towards the middle of its
range. Some of you may be thinking ocrrelation
is not causation, rightly so, but apart from the iron ore moves all I
can suggest is ‘more buyers than sellers’ (which’ll annoy a
whole other bunch of folks 😉 . AUD/NZD rose on the session and with
Australian inflation data due tomorrow (preview post above) may
suggest a degree of further unwinding on this cross ahead of
potentially higher CPI from Australia and perhaps an RBA rethink on
its persistent 2024 guidance.
USD/JPY
is making a fresh high for the session as I prepare this post,
nudging above 113.90. Yen looks to be weighed on ahead of Japan’s
election at the end of this month. Elon Musk went as far as to tweet
out his inflation view (see bullets above) for the US – higher. US
inflation, and corresponding moves in US rates, are
underpinning USD/JPY (this is not news to anyone).