Asia equities edge higher
Wall Street had a mixed session yesterday, with the street falling into their happy place and buying tech and selling everything else, although the session was quiet. The edged 0.08% lower, while the rose by 0.49% and the fell by 0.37%. Clearly, Wall Street isn’t too concerned about the G-7 tax agreement and US big tech.
In Asia, and futures have moved higher again, greenlighting Asia to launch its day on a positive note. The has risen by 0.35%, with the edging 0.10% higher. China’s has risen 0.40%, the is flat, and is 0.50% higher.
Regionally, Singapore is down 0.15%, while Kuala Lumpur has climbed 0.50%, with Taipei falling 0.35% and Jakarta rising 0.10%. Australia’s has risen 0.45%, while the is just 0.05% higher.
Barring a headline surprise, Asia looks content to follow Wall Street into wait-and-see mode ahead of data later this week.
The US dollar drifts lower
The drifted lower in a non-descript session, suggesting that the downside remains the path of least resistance for now for the greenback. The dollar index lost 0.18% to 89.98 yesterday, creeping a few points higher to 90.00 in Asia , in what looks to be a moribund session. The index remains in a broad 89.50 to 90.50 range, with a breakout indicating the US dollar’s next directional move.
Both and moved 20 points higher to 1.2185 and 1.4168, respectively. Ultimately, EUR/USD is bouncing around in a wider 1.2100 to 1.2250 range this past fortnight, while GBP/USD has clear support and resistance at 1.4100 and 1.4250. In the bigger picture, only failure of 1.2000 and 1.4000 respectively undermine the longer-term bullish outlook for both currencies.
Asian currencies are locked in neutral after the PBOC succeeded in putting a floor under yuan appreciation last week. at 6.3920 today, with the PBOC setting a neutral fixing today. Until the PBOC signals comfort at more yuan appreciation, the broader Asian grouping will likely mark time around these levels.