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Asia Forex news roundup: The AUD falls after the RBA.

  • 02 November, 2021
  • 5:59 pm EET

Asia Forex news roundup: The AUD falls after the RBA.

On Tuesday, November 2, 2021, forex news for Asia trading will be released.

 

During the early part of the Asian day, forex swings were minimal as traders awaited

  • On Tuesday, the Reserve Bank of Australia
  • on Wednesday, as well as the Federal Open Market Committee

The flow of news and data was minimal, and it did not have a substantial impact on rates.

USD/JPY rose somewhat from its lows in the United States to trade slightly above 114.10, but quickly fell back to below 114.00.

So, back to the RBA statement. The bank stated that it has dropped its aim of 0.1 %  for the April 2024 bond. This was never in doubt; they lost control of it last week, and their confirmation reeks of a desperate attempt to save face.

Otherwise, it maintains its weekly QE purchase amount of $4 billion AUD. The Bank said in a statement that it was keeping a close eye on economic trends and that wage growth was needed in the near future.

The Australian dollar fell quickly following the RBA news, and it is now trading just around 0.7500, down from highs of over 0.7530 earlier in the session. There hasn’t been any movement in the other main currency pairs.

At 4 p.m. Sydney time, RBA Governor Lowe will hold a press conference (0500GMT)

 

CPI data out of South Korea :

Headline +3.2% y/y
  • prior +2.6%
  • highest since January 2012
  • +0.1% m/m (prior 0.5%)
Core inflation +2.4% y/y
  • prior +1.5%
  • highest since December 2015

 

Markets News :

  • JPY leads, AUD lags on the day
  • European equities mixed; S&P 500 futures flat
  • US 10-year yields down 1.9 bps to 1.554%
  • Gold down 0.2% to $1,789.09
  • WTI down 1.2% to $83.06
  • Bitcoin up 4.0% to $63,113

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