Home Forex Market News Asian Session – Yen, aussie rise following Chinese GDP

Asian Session – Yen, aussie rise following Chinese GDP

Asian financial markets were giving some mixed signals on Tuesday; perhaps an indication that the recent wave of market turbulence is not quite over yet. The day’s most important statistic was Chinese GDP growth, which came in slightly better-than-expected and helped the Australian dollar, while some profit-taking in the Nikkei propelled the yen higher versus the US dollar.

China’s growth during the third quarter came in at 7.3% year-on-year versus expectations of a 7.2% print. The fact that the number beat expectations was of course a positive, but it should be still pointed out that China is slowing down and that it was the slowest growth rate in about 5 years. The data helped the aussie add to its gains versus the greenback, as it traded above 88 cents at 0.8819.

While a strengthening aussie was perhaps a sign that risk appetite was improving, this was contradicted by a yen that surged against the US dollar. Dollar / yen fell to around 106.30 from close the 107 level the previous session as the Nikkei in Tokyo gave back half its gains of the previous day by falling 2% as a result of profit-taking. A rising yen does show that risk appetite has not returned to positive, so it is worth watching this theme for a while longer.

Despite the previous day’s gains on Wall Street (the S&P was up almost by 1%), the 10-year Treasury yield dropped to 2.14%, which weighed on the dollar. Euro / dollar rose to 1.2830.

Looking ahead to the remainder of the day, the European session will not feature any important data releases but US existing home sales later in the day will attract some attention in order to gauge the strength of the US housing market.

More Details

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments