OANDA

OANDA Asia - ​Sluggish Monday Morning

News   •   Feb 22, 2016 10:16 SGT

USD in Asia

Hello to a sluggish and quiet Monday morning. Regional currency markets have been struggling to establish any clear direction so they continue to track broader USD moves. On that front, US equity markets closed flat on Friday after trading in the red much of the day. WTI oil was lower while the USD CPI for the month of January came in higher than expected which led some to believe the uptick in inflation might keep the Fed tightening bias on the table.

No magic bullet

The weekend’s meeting of G20 Finance Ministers will be the major focus this week with global growth woes likely to be the event headline. Don’t expect any magic bullet solution to appear but a policy consensus among ministers might go a long way to shoring up investors’ sentiment.

Bets on Aussie swing into black for first time since May

For the first time since last May, Aussie speculative bets have swung positive, albeit ever so slightly. The swing in sentiment is likely more about the lack of keenness towards the US dollar than outright bullishness on the Aussie, as the Fed appears to be backing off from aggressive rate hikes. However, views continue to run mixed on the Aussie. On the one hand, we have the widely held negative global economic outlook, weighing negatively on commodity currencies. While on the contrary, the recovery in iron ore prices, which gapped over 10% last week, is certainly supportive for the Aussie. Overall the market is struggling to establish any definite direction currently.

Thursday in focus

I expect the Aussie market to remain confined to the narrow ranges as locals now look toward Thursday’s important CAPEX report, as the non–mining sector result will fall under scrutiny from traders for signs of improvement.

---

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks. Refer to our legal section here.

Financial spread betting is only available to OANDA Europe Ltd customers who reside in the UK or Republic of Ireland. CFDs, MT4 hedging capabilities and leverage ratios exceeding 50:1 are not available to US residents.

OANDA Asia Pacific Pte. Ltd. is regulated and licensed in Singapore by the Monetary Authority of Singapore (CMS Licence No: CMS100122-4) and the International Enterprise Singapore (Commodity Brokers Licence No: OAP/CBL/2012) to trade commodity CFDs.