ASEAN Currencies Lower Post NFP

 The offshore Chinese yuan slipped 0.5 percent,
giving back some of the sharp gains made last week, when it
gained about 1.8 percent in a record weekly rise. The onshore
yuan was steady on the day.
    The spurt in CNH last week was driven predominantly by a
jump in yuan borrowing costs offshore and tighter liquidity,
which helped trigger the unwinding of bullish bets on the
    "Despite some semblance of order emerging, we should expect
volatility to remain high," Stephen Innes, senior trader for FX
broker OANDA said in a note. 
    "I also expect that the underlying yuan depreciation
pressures should return as fundamental reasons that are driving
depreciation, such as capital outflows and concerns on Trump's
China policies...haven't changed," Innes wrote.
    Emerging Asian currencies have retreated broadly over the
past couple of months as U.S. bond yields jumped on expectations
that President-elect Donald Trump's proposals for infrastructure
spending and tax cuts will boost U.S. economic growth and
    Worries about Trump's stance on trade have also weighed on
Asian currencies. Trump has vowed to label China a currency
manipulator on his first day in office, and has threatened to
slap huge tariffs on imports of Chinese goods.


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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