Asian FX Market Overview
Asian Currencies Remain Stable Amid China’s Economic Goals Disappointment
Most Asian currencies showed minimal movement on Tuesday as China’s 2024 economic targets failed to excite the markets. The dollar also remained steady, awaiting further signals on interest rates later in the week.
Anticipation for U.S. Interest Rate Cues Keeps Regional Units in Check
Expectations for more insights on U.S. interest rates kept regional currencies trading cautiously, especially as Federal Reserve officials continued to temper expectations for early rate cuts.
Chinese Yuan Unaffected by National People’s Congress Outcomes
The Chinese yuan saw little change despite China setting a 5% GDP target for 2024, the same as the previous year. Investors questioned the achievability of the target, given the lower fiscal deficit goal and lack of clarity on stimulus measures proposed by the government.
Broader Implications on Asian Currencies from China’s Economic Standing
Other Asian currencies took cues from China’s economic outlook, with the and weakening, while the remained stable. The hovered near a four-month low despite signs of economic recovery.
Dollar Stability Ahead of Powell’s Testimony and Payrolls Data
The dollar held steady alongside the ahead of key events this week. Traders maintained bets on future Fed rate cuts, awaiting Chairman Powell’s testimony and Friday’s crucial payrolls data release.
