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Forex news for Asia trading
for Tuesday 20
October 2020
There was some early optimism
(or blind faith, if you prefer) with late US headlines crossing that
Pelosi and Mnuchin were ‘narrowing their differences’ and Senate
leader
McConnell promising a relief
bill vote on Tuesday or Wednesday.
Pretty soon Senate minority leader Schumer chimed in with comments
that Republican proposals were unacceptable, soon followed by a
Republican senator saying a 1.8tln bill would be hard to pass. The
US Senate have been saying no to an extra stimulus bill for months
now and until that changes there is no further stimulus coming.
Pelosi has set an end of Tuesday deadline for a pre-election relief
bill. Will it be different this time?
After that steady start on the shot of hopium risk currencies soon began
to slip away. AUD and NZD are both down on the session here. AUD was
helped lower by remarks from RBA Assistant Governor Kent reiterating
Lowe’s dovishness from last week, and then again later by the
minutes of the RBA’s October policy meeting which were also dovish.
USD/JPY
popped as short-term trading stops were taken out above 105.50 and
thereabouts. It managed to gain all the way to above 105.80 briefly
and is currently steadying around 105.50 and just above.
Cable
and EUR/USD are little changed. Gold is down just a few dollars.