Yuan strengthens as Biden-Xi tries to reset; the dollar is waiting for the data

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SYDNEY – The yuan hit a five-month high

in Asia on Tuesday as traders welcomed the dialogue between the United States

and Chinese presidents, while the dollar held close to 16 months

peak against the euro ahead of US retail sales data that could

influence the outlook for interest rates.

Calling US President Joe Biden his “old friend”

Chinese counterpart Xi Jinping said their countries must

increase communication and cooperation – observations they had

markets hoping that friendliness could lead to a reduction in tariffs.

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Support for riskier currencies waned as further reading

On both sides showed many differences remain in the ties

between the two largest economies in the world, but the yuan was kept

supported at $ 6.3728.

It had risen to 6.3666 per dollar.

The euro, at $ 1.1377, lacks major support until

about $ 1.12 and was beaten on Monday amid concerns over

Outbreaks of COVID-19 on the continent and persistence of Europe

head of the central bank who will not be in a hurry to raise rates.

The risk-sensitive Australian and New Zealand dollars realized

modest gains, but they retraced them as traders looked forward to the

US retail sales data due at 1300 GMT. the yen

it stabilized at 114.15 per dollar and the Aussie was last

flat at $ 0.7344.

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“Retail sales in the United States today are the big watch to gauge whether or not demand

it is resilient in the midst of inflation, “said Vishnu Varathan, head of

economics at Mizuho Bank of Singapore. If it is, it could mean

more pressure on the Federal Reserve to raise rates first.

Another factor that kept the moves small in the Asian session was

they say Biden may soon announce his choice for the Federal Reserve

chair – probably or a reconfirmation of Jerome Powell oa

promotion for Fed Governor Lael Brainard.

“If Powell is chosen, we don’t expect any impact on the dollar. But

if Brainard is chosen, we expect a short-term decline in the US

interest rates and the dollar because it is widely believed a

The Brainard-led FOMC would be more accommodating than otherwise, “he said

Carol Kong, Commonwealth Bank of Australia analyst.

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At the beginning of the Asian session, the head of the Reserve Bank of Australia

Philip Lowe again rejected market prices in the RBA rate

hikes as soon as 2022, but had little immediate effect on

traders expecting a tightening of 100 basis points by early 2023.

The New Zealand dollar remained stable at $ 0.7035 and in

a wait mode before the Reserve Bank of New Zealand next week

meeting where markets priced a 25 basis point rate hike

and a 40% chance that it will be 50 basis points.

The pound remained stable at $ 1.3419.

Euro crosses are also languishing after Monday’s insistence

by the head of the European Central Bank Christine Lagarde walking

it might do more harm than good at this point – an accommodating contrast

with hawk hints that are dropped by other plants

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bankers.

The collapse of the common currency rose to $ 1.1356 on Monday

also the US dollar index at its 2021 high of 95,595

how to hit the euro quite broadly.

The gap in tones across the Channel has sent the euro on its side

Monday’s steepest slide against the pound in six months as a bank

of England Governor Andrew Bailey told a parliamentary committee

he was “very uncomfortable” about inflation.

Canadian central bank chief Tiff Macklem was even more so

blunt and said “we’re getting closer” to hiking in an

piece of opinion, bringing the Canadian dollar to four and a half

high of the year against the euro.

Bitcoin fell 5% and test support was

$ 60,600.

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Currency Offer Prices 0633 GMT

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Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid

Previous modification

session

Euro / Dollar $ 1.1375 $ 1.1367 + 0.07% -6.90% +1.1386 +1.1360

Dollar / Yen 114.1900 114.1850 + 0.01% + 10.56% +114.3050 +114.1350

Euro / Yen

Dollar / Swiss 0.9250 0.9246 + 0.02% + 4.53% +0.9257 +0.9238

Pound / Dollar 1.3422 1.3415 + 0.05% -1.76% +1.3437 +1.3412

Dollar / Canadian 1.2518 1.2511 + 0.06% -1.70% +1.2522 +1.2493

Australian / dollar 0.7338 0.7348 -0.13% -4.61% +0.7368 +0.7336

New Zealand 0.7033 0.7045 -0.16% -2.06% +0.7063 +0.7033

Dollar / dollar

All points

Tokyo places

Places of Europe

Volatility

Information on the Tokyo Forex market from BOJ

(Editing by Shri Navaratnam, Jacqueline Wong and Simon

Cameron Moore)

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