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ForexLive Asia FX news wrap: USD loses ground

Forex news for Asia trading on
Tuesday
19
October 2021

There
were across the board losses for the US dollar in Asia morning trade
Tuesday with not much in the way of a clear fresh catalyst or
catalysts. The data release agenda was bare with only Reserve Bank of
Australia October meeting minutes featuring.

There
was little to surprise in the minutes. The RBA sees economic growth
returning in Q4 as the lockdowns of Q3 are coming to an end – nor
surprise this. The Bank also continues to see only moderate
inflationary pressure in Australia and little indication of wage
growth growing anything more than in a subdued fashion – again
nothing to surprise here. The minutes did make specific mention of
not seeking to cool hot house price growth via higher rates as doing
so would negatively
impact the labour market – again this is not a surprise with
macroprudential measures favoured. And, once again, the Bank
said it expects conditions for a rate hike to not be present until
2024 at the earliest (ps. markets disagree with this, pricing a much earlier hike).

All-round quite dovish indeed. Which
didn’t stop AUD/USD from rising, and indeed as noted, all major FX
rose against the big dollar.

Coal
futures in China continued to surge to fresh record highs. 

The onshore yuan extended its gains. USD/CNY below:

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