September 30, 2020
The dollar hardly moved in Asian trade on Wednesday, as traders took ringside seats and assessed a fierce first debate between Republican President Donald Trump and Democratic rival Joe Biden ahead of the Nov. 3 U.S. presidential election.
In the hectic debate, overshadowed somewhat by Trump’s repeated interruptions in a chaotic encounter, the candidates went to blows over the president’s leadership on the coronavirus pandemic, the economy, and taxes.
The dollar index against a basket of currencies hardly budged at 93.821, after hitting a two-month high last week, although, Month- and quarter-end currency flows appeared to hamper the dollar, while better-than-expected U.S. economic data also dented its perceived safe-haven bid.
China’s yuan held steady even after PMI data showed strong factory activity growth, which backed up recent signs of a rebound in broad sectors of the world’s second-biggest economy, In the onshore market, the yuan held steady at 6.8130 against the dollar, while the offshore yuan also steadied at 6.8137 per dollar.
The Euro was firm around a one-week high of $1.1746 hit overnight. Against the Yen, the single currency changed hands at 124.01 Yen, hovering near a two-week high of 124.11 Yen, while the dollar also advanced a fraction against the Swiss franc at 0.9202 francs, after falling as low as 0.9191 francs overnight.
Against the yen, the dollar was steady at 105.64 yen, a fraction below a two-week high of 105.74 it marked overnight.
Traders also remain focussed on progress made on a fiscal stimulus package to cushion the coronavirus blow as U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the
White House this week, after meeting with Treasury Secretary Steve Mnuchin and making plans for further talks on Wednesday.
Pelosi said on Monday Democratic lawmakers unveiled a new $2.2 trillion fiscal stimulus bill, but in an interview with CNBC, White House economic adviser Larry Kudlow made clear that the White House still views the updated figure as too high.
Sterling was steady at $1.2867 against the dollar. The British pound initially rose overnight in hope for a Brexit deal, but soon retracted after the Bank of England’s governor left the door open for using sub-zero interest rates if needed.
The dollar stepped back against its New Zealand counterpart but advanced on the Australian peer. The Aussie edged 0.24% lower at $0.7116, apparently taking its lead from falling stocks.
The kiwi rose modestly, last fetching $0.6593 after an ANZ Bank survey showed New Zealand business sentiment improved in September amid growing confidence that the country’s coronavirus outbreak is under control.
Asian Markets Specialist
Susan has extensive experience trading the commodity, bond and futures markets.
She currently specializes in the Asian markets and holds a BA of Finance & Economics.
Susan is a former analyst at FXStreet but currrently writes exclusively for FVPTrade.