Asia Markets Mixed as Dollar Strength Resonates

During early Asian trade, yields of U.S. benchmark 10-year Treasury notes were up at 2.3387 percent, while 30-year Treasury bond yields were at 3.0158 percent.

The People’s Bank of China set Monday’s yuan mid-point fix at 6.8985 yuan per dollar, compared with the last close at 6.888. The dollar/yuanwas trading at 6.895 as of 3:46 pm HK/SIN. That was its weakest since weakest since at least January 2009, during the global financial crisis.

“We are approaching the psychological 7 dollar/yuan level and predictable rumblings from Chinese policy makers are making the rounds, suggesting that the 7.00 level could be the ‘next line in the sand,'” said Stephen Innes, senior trade at Oanda, in a note on Monday

“U.S. fixed income ratcheting higher while the Bank of Japan maintains its de facto zero percent peg in 10-year Japanese Government Bonds (JGBs). This underlying divergence will continue to support dollar/yen higher,” said Stephen Innes, senior trade at Oanda, in a note on Monday


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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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