Asian Stocks Up, Despite Trade War Tensions- AUD Gets the Best of Chinese PM’s Comment on Yuan price
- Mostly, all of the Asian stocks rose on September, 18th, 2018.
- The bank of Japan Leaving monetary policy alone
- China said that the Yuan would not be devalued
- Eyes on UK inflation data, Coming up in the European Day
Australian Dollar getting a boost by comments made by Chinese Prime Minister, Li Keqiang
At a World Economic Forum Event in Tainjin, the Chinese PM said that the China would not tolerate any kind of devaluation of Yuan in order to stimulate the exports. There was some confidence in it, despite recent tariff raising between US and China, yet, AUD gets the best of it, as it was in the early Australian session and AUD received a decent boost out of it.
The Japanese Yen was steady against USD and all of the major currencies except Eur and GBP, as the Bank of Japan left its monetary taps wide open for another month.
Japan’s trade deficit was happened to be almost doubled in August along with sensitive surplus with the US shrinking, JPY is really in no shape to turn around and fight back. It ought to fall regardless of IG sentiment and the optimism or whatever left of it.
UK pound has taken a little shivering as the politicians started to throw negative comments regarding the Brexit deal. However, UK Pound is still holding on at 1.3140 for quite a while. It is expected to hold it over 1.3100 for next couple of days and a path of slow downstream for GBP might have opened up, yet it would not hold long, as there is a Brexit summit upcoming, and we are anticipating a mixed outlook with no results at the end of this meeting. The deal might as well accompany us further in to the November, as EU president wants to finalize things by that time.
How the Asian Stocks are holding up
Here is how, Nikkei 225 is trading
Although, the currency is in a dreadful condition, the stocks are piling up. The Nikkei added 1.3% today and Shanghai as well as Hong Kong were closer to 1% up in Wednesday, September 18th, 2018. However, the outbreak of Nikkei 225 might not have been finished yet and the outbreak in Asian Stocks might extend up to the end of this month as well. However, that all depends how the market reacts to the 200 billion new tariffs added over the Chinese goods in US and the next FED meeting along with the local currency position. There are just too much determinants, are not there?
Read more about the Dollar dominance here.
Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.