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Currency Market Analysis

Oct 13, 2020 | Currency Market Analysis

Global Themes

US tech leads stocks higher; RMB remains pressured

US shares had a strong session overnight, led by technology stocks, but other markets didn’t benefit.

The US’s Dow Jones index gained 0.9% while the technology-focused Nasdaq jumped an incredible 3.1%.

The big technology stocks led the market with Amazon up 4.8% while Apple gaining 6.4%.

However, other markets, including the gold, oil and copper were mostly weaker.

RMB underperforms

The RMB was also unable to benefit as it extended losses following the PBOC’s move to ease obligations for USDCNH buyers.

The euro and Japanese yen were both weaker.

The AUD was also hit by renewed tension with China with reports suggesting the Chinese government has suspended Australian coal imports.

Chinese data

The main focus today remains on Chinese with the country’s trade balance due around 10.00am.

Chinese trade looks to have been mostly resilient with the USD-denominated trade surplus back at record highs.

UK employment and US inflation are both due later today.

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