It’s a calmer mood in markets today but Asian stocks are finding reason to rally, helped by China’s promise to deliver on measures to bolster the economy. A stronger Chinese yuan fix is adding to that message as well. In case you missed the headlines, Eamonn’s got you covered here.
The yuan is noticeably stronger as such today but that hasn’t quite translated much to the rest of the major currencies bloc:
The aussie and kiwi are just a touch higher, benefitting from the stronger yuan as noted above. AUD/USD in particular is seeing an added bounce after testing its 200-day moving average yesterday. The key support level is seen at 0.6721 currently.
At this juncture, we’re starting to creep into territory where markets are going to keep the focus solely on the Fed decision tomorrow next. That might make for a quieter mood in the sessions ahead. But if anything else, the risk mood will be a key driver of trading sentiment in this time of flux.