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A Positive Vibe In Asian Markets

Published 10/08/2019, 01:56 AM
Updated 07/09/2023, 06:31 AM
USD/KRW
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USD/CNY
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Asia update

There's a clear USD selling theme in Asia this morning, which happens to coincide with China coming back from the golden week holiday, and ahead of the resumption of trade talks between China and the U.S. If expectations for a contentious trade-talk outcome were still high, then the incentive to sell USD across the board would be limited, and even more so against the Yuan.

Asian equity markets are trading with a positive tone supported by some newfound trade calm. Price action suggests the markets are expecting, at the very least, further tariffs to be deferred.

This may be stemming for the fact that U.S. exceptionalism may be at risk with the U.S. manufacturing data turning decidedly bearish and the Chinese economy continues to struggle. Indeed, convincing reasons why both sides might want to iron out an intern deal.

If President Trump figures a deal will give him a much need political win to bolster the economic and political gale-force headwinds he's facing; perhaps a trade deal is in the cards.

But to expect anything more really comes down the fact if Vice Premier Liu He has Beijing blessing to improve on their last offer, and well beyond agricultural products.

Korean Won

Global growth bellwether USD/KRW traded down 1193.2 from 1197.5 with USD/China offered, and with riding the news that a Korean shipbuilder had won contracts for six container ships, totalling KRW1.1 trillion all of which has kept KRW sentiment bullish and USDKRW offered

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