ForexLive Asia-Pacific FX news wrap: USD down, region’s equities rise

  • Forex news for Asian trading on Thursday, 16 February 2023

The USD has lost ground for the session pretty much across the majors board, but FX performance has been mixed. EUR and yen have performed better than AUD and NZD, for example. There was little fresh news flow, but we did get data points.

AUD/USD shuddered lower after a big miss on the January labour market report. Jobs were lost for a second month in a row and the unemployment rate rose to its highest since May last year. It does seem there were some seasonal factors unaccounted for (see the ANZ post above, analysts there expect a solid bounce back for employment in the next report). NZD/USD traded down with the AUD. While in New Zealand, there are calls for a pause from the Reserve Bank of New Zealand at its February 22 meeting due to the cyclone national disaster in the country that has cause fatalities and widespread damage.

The weaker USD has contributed to a bounce back for both the Australian and New Zealand dollar.

Japanese trade data, for January, showed the largest merchandise trade deficit ever.

China’s President Xi outlined plans to increase industrial and investment cooperation with Asia.

Asian equity markets:

  • Japan’s Nikkei 225 +0.7%

  • China’s Shanghai Composite +0.8%

  • Hong Kong’s Hang Seng +2.2%

  • South Korea’s KOSPI +1.9%

  • Australia’s S&P/ASX 200 +0.8%

aud wrap 16 February 2023

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