EM Asia fx higher ahead of FOMC

 The Indonesian rupiah appreciated 0.1 percent against
the dollar after manufacturing activity improved for the second
straight month in April to hit a 10-month high.
    The Indian rupee strengthened for a second day
after a business survey showed that Indian manufacturing
activity expanded for a fourth consecutive month in April,
helped by stronger growth in new orders.
    "The manufacturing PMI prints from Asia was mostly upbeat
and well in the expansion territory, suggesting that the
manufacturing momentum still had room to extend in Q2," OCBC
Bank said in a note. 
    Among other currencies, the Taiwanese dollar was
firmer for a second day, rising 0.1 percent to hit its highest
since Sept. 2014.
    Taiwan's central bank said it sees volatility in the local
currency against the U.S. dollar as "unavoidable" and urged
local companies to be vigilant about currency
    Markets are also keeping a close eye on the Fed's policy
statement for hints on the U.S. interest rate outlook.
    The Fed is widely expected to keep interest rates unchanged
at the end of its two-day policy meeting on Wednesday, but
investors will look to see whether the central bank downplays
the recent soft patch in the economy to leave the door open for
a rate increase in June.
    "The Federal Open Market Committee should provide some
interest but will offer little in the way of a surprise with the
market more focused on the language surrounding June," Stephen
Innes, senior trader at OANDA said.


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