Week in FX Asia – Yuan Rises in Global Forex Stage Reaches Top 10 Status

Chinese Yuan Rises in Global Trade
For the first time the Chinese Yuan has joined the elite club of the world’s ten most frequently traded currencies. This was one of the biggest highlights of the Bank of International Settlements (BIS) survey released this week. The full list had two other notable items. The Australian dollar continues to climb given it’s growing influence and connections to China. The Mexican peso continues to be a favourite of hedge funds and came out at number 8 in the triennial survey.

Here is the top 10 currencies by turnover:
1. USD
2. EUR
3. JPY
4. GBP
5. AUD
6. CHF
7. CAD
8. MXN
9. CNY
10. NZD

Singapore beating Tokyo as FX Hub
Although the Singapore dollar could not crack the top 10 list it sits barely outside at number 14. The coup that the city stage managed in the last three years was to unseat Tokyo as the region’s top FX hub. The trading average increased 44% from April 2010 to the same month in 2013. The new figures put Singapore in the elite just behind London and New York.

Australian Elections
This Saturday Australians will vote to decide the political leadership of the country. The opinion polls give a slight advantage to the opposition with a 53% take of the vote. Employment is one of the biggest issues as Australian boomed along with China and suffered with the slowdown causing massive unemployment in sectors such as mining.

Australia requires all its citizens to vote. Failure to do so, or to provide a valid reason results in a monetary penalty. This policy results in very high voter turnout with over 90% complying with their civic duty.


* CNY New Yuan Loans
* CNY Consumer Price Index
* NZD Reserve Bank of New Zealand Rate Decision
* AUD Employment Change
* AUD Unemployment Rate
* EUR ECB Publishes Monthly Report
* USD Advance Retail Sales
* USD U. of Michigan Confidence

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza