Forex today in Asia was characterized by minimal volatility and tight trading ranges, as the dust settled over the US mid-term elections aftermath. The US dollar staged a solid comeback across its major rivals, having almost reversed a Democrats win induced sell-off seen a day before. The USD/JPY traded firmer and headed for a test of the 113.85 barrier amid risk-on action on the Asian equities and higher Treasury yields. The Aussie also derived support from a big beat on the Chinese exports and imports data while improved risk appetite also underpinned. The Kiwi advanced, but remained capped below the 0.68 handle after the RBNZ left the cash rate unchanged and retained the dovish tone.
Among other majors, the EUR and the pound were buoyed by some optimism over the European politics while the Loonie benefited from a rebound in oil prices on fresh OPEC output cuts talks. Gold inched lower near 1225 level, slightly cautious heading into the FOMC rate decision.
Main Topics in Asia
Japan data sees Machine orders decline, Bank Lending contracts
BoJ Summary of Opinions: Inflation to increase "gradually"
RBNZ Gov Orr: Keeping stimulative policy for now
US Dem Pelosi: ready to pursue Trump oversight - Reuters
China to levy anti-dumping duties on rubber from S. Korea and Japan
China’s Oct trade balance (CNY): Exports and imports jump – a big beat
China’s October trade data (USD): Surplus expands 34.01bn, in line with estimates
US to impose new duties on Chinese aluminium sheet products - Reuters
Asian stocks up across the board as post-US election risk bid continue
Key Focus Ahead
A quiet EUR calendar this Thursday, sees the second-liner Swiss jobless rate at 0645 GMT, soon followed by the German trade balance at 0700 GMT. The EU economic bulletin, as well as the European Commission’s growth forecasts, will be published later in the European session.
The NA session remains eventful, with the Canadian housing data on the cards alongside the weekly US jobless claims release. Besides, speeches by the ECB President Draghi and Governing Council member Coeure will be due after 1400 GMT. The main event risk for today remains the FOMC monetary policy announcement due later at 1900 GMT.
EUR/USD: Indecisive breakout, focus on the FOMC rate decision
A close below 1.1395 looks likely as the Fed-ECB monetary policy divergence is set to grow further in the near future. The Fed is likely to keep rates unchanged today and signal a December rate hike.
GBP/USD trying to put in a floor at 1.3100 before stretching higher
Little data of note is slated for the economic calendar for Thursday, but GBP traders will be gearing up for the UK's GDP reading, due on Friday, and Brexit headlines continuing to leak out of the UK are suggesting that …
FOMC Preview & Post Election Outlook for the Dollar
With the US Midterm Elections behind us and the Democrats victory in the House the U.S. dollar ended the day lower against most of the major currencies. Looking ahead, we have a Federal Reserve monetary policy announcement on Thursday.
RBA SoMP: Expect no revisions to growth forecasts - HSBC
Analysts at HSBC offer a brief preview of Friday’s Reserve Bank of Australia’s (RBA) Statement of Monetary Policy (SoMP) due at 0030 GMT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.