News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • RT @FxWestwater: Australian Dollar, APAC Markets Focus on Bond Yields to Start March Link: $AUDUSD…
  • 🇦🇺 Investment Lending for Homes (JAN) Actual: 9.4% Previous: 8.2%
  • 🇦🇺 Home Loans MoM (JAN) Actual: 10.9% Previous: 8.7%
  • Wall Street IG Client Sentiment: Our data shows traders are now net-long Wall Street for the first time since Feb 01, 2021 when Wall Street traded near 30,246.40. A contrarian view of crowd sentiment points to Wall Street weakness.
  • Aussie 10-year yield extends drop to 32 basis points after RBA buy notice - BBG $AUD
  • RBA to buy A$4 billion of longer-dated bonds, double usual size - BBG $AUD
  • Heads Up:🇦🇺 Investment Lending for Homes (JAN) due at 00:30 GMT (15min) Previous: 8.2%
  • Heads Up:🇦🇺 Home Loans MoM (JAN) due at 00:30 GMT (15min) Previous: 8.7%
  • 🇰🇷 Balance of Trade (FEB) Actual: $2.71B Previous: $3.76B
China Reduces Holdings of US Treasuries for Fourth Consecutive Month

China Reduces Holdings of US Treasuries for Fourth Consecutive Month

Peter Hanks, Strategist

Talking Points:

  • Total net-flows saw foreign exposure to the US drop by $29 billion in September
  • China and Japan reduced their holdings again, the fourth consecutive reduction by China
  • While the flows were lower than expected, the selling by China does not constitute a development in the trade war

The US Department of the Treasury released Treasury International Capital (TIC) data Friday in which the flows for September were outlined. Total net TIC flows totaled -$29.1 billion versus the expected $108.2 billion. The majority of the outflows were observed in foreign official outflows which totaled $52.7 billion. Conversely, foreign private investors increased their holdings by $21 billion.

Long-term holdings, regarded as the more important metric, increased by $30.8 billion in the month of September. The figure falls short of the expected $62.7 billion and considerably lower than last month’s $131.8 billion. Part of the shortfall originates from reduced holdings by the two largest foreign holders, China and Japan. For the fourth consecutive month, China has reduced its holdings of US Treasuries.

Catch up on the context of economic conflicts like the trade war between the United States and China with “A Brief History of Trade Wars.”

Despite consecutive outflows from China, there is still insufficient evidence to suggest the move is a deliberate action in the trade war. Since May, the reduction amounts to $32 billion for China and $20 billion for Japan. While not insignificant sums, they pale in comparison to the totals held by each central bank. China holds $1.15 trillion, edging out Japan at $1.03 trillion for the top spot.

Learn to trade around news events like today’s monthly TIC data with our Introduction to Forex News Trading guide.

US Dollar Basket (DXY) Price Chart 10-Minute, November 16th (Chart 1)

US Dollar basket price chart, TIC data

The monthly statement had minimal impact on the Dollar, largely due to its release time.

The Dollar was instead driven lower by dovish comments from Fed vice Chair Richard Clarida and Philadelphia Fed President Patrick Harker. In a statement Friday afternoon, Harker weighed on rate hike projections saying he is “not convinced a December rate hike is prudent.” The statements resulted in downward pressure on the Dollar basket. The collection of dovish comments will likely alter the fundamental landscape for the Dollar moving forward.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more: US-China Trade War Weighs on World’s Largest Shipping Company

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.