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Asia-Pacific news roundup: New Zealand’s Covid lawsuit sinks the NZD

  • 17 August, 2021
  • 1:53 pm EEST

Asia-Pacific news roundup: New Zealand’s Covid lawsuit sinks the NZD

On August 17, 2021, the following forex news will be released for Asia-Pacific trading:

Asia-Pacific trading has sent shivers down the rest of the world’s spine for the second day in a row. China’s data is softening, and Australia and New Zealand are now concerned.

The tone was initially positive, and Japanese markets joined the US-led bounce in optimism, but it did not persist. According to the RBA minutes, they discussed not tapering and stated that if the situation worsened (hint: it has), they may not taper.

This sparked some Australian dollar selling, which appeared to be the dominant feature of the trading session.

But wait, a tape bomb landed in New Zealand, prompting police to report the first domestically transmitted covid case since February. Given that delta appears to be unstoppable, the market isn’t holding its breath to see what happens next. NZD/USD dipped 0.3 % at first, then tripled. Before the announcement, it finally saw some bids just above 0.6950 from 0.7015.

Several yen crosses are at risk, and today’s sentiment and price action aren’t helping. The AUD/JPY has broken through the July low, which is not a good indication. So far, the pressure on the loonie and the pound has been minimal, but it is increasing.

The unemployment rate in the United Kingdom and retail sales in the United States are both expected to rise in the coming months.

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Markets News :

  • JPY leads, NZD lags
  • Nikkei up 0.1%
  • WTI crude oil up 7 cents to $67.36
  • US 10-year yields down 0.7 bps to 1.250%
  • Gold down $2 to $1786

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