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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
Low
High
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
USD/JPY
Bearish
Low
High
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
  • The US Dollar weakened against ASEAN currencies like the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso. Ahead, Chinese GDP and US retail sales are eyed. Get your market update from @ddubrovskyFX here:https://t.co/fy366LmjDK https://t.co/4wFFibsNz2
  • Here is an atypical cross for those that just focus on the majors, but nevertheless worth following. $GBPNZD's 10-day ATR is at an extreme low level (lowest since Aug 2018). Suggests a higher risk of a break in the future https://t.co/gguiZrXUMW
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/OtwK8uJohe
  • 🇰🇷 Unemployment Rate (JUN) Actual: 4.3% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-07-14
  • Heads Up:🇰🇷 Unemployment Rate (JUN) due at 23:00 GMT (15min) Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-07-14
  • The ASX 200 stock index looks poised for a reversal at key resistance as Australia-China trade tensions continue to escalate. Get your #ASX 200 market update from @DanielGMoss here:https://t.co/wiP4yPITa6 https://t.co/Zgc7ATjvbT
  • RT @DanielGMoss: Broad risk-on tilt seen early in #APAC trade The haven-associated $USD and $JPY plunging The trade-sensitive $AUDUSD an…
  • Market snapshot: US equity futures pointing higher early into Asia trade
  • Trump Press Briefing: - We will be ready to distribute vaccine when its ready. We are seeing promising signs.
  • President Trump signs Hong Kong sanctions bill targeting banks and ends special status agreement. "Hong Kong will now be treated the same as mainland China" $USDHKD
Stocks Slip As US Yield Curve Continues To Stoke Recession Fears

Stocks Slip As US Yield Curve Continues To Stoke Recession Fears

2019-08-29 05:06:00
David Cottle, Analyst
Share:

APAC Stocks Talking Points:

  • Major indexes were broadly lower
  • Falls weren’t large, however, but recession worries still dominate
  • USDJPY failed to hold the gains of late Wednesday

What do retail foreign exchange traders make of your favorite currency’s chances right now at the DailyFX Sentiment Page

Bond markets continued to lead equity through Asia’s Thursday with an often reliable recession signal from the US Treasury market unsurprisingly snuffing out any glimmers of optimism elsewhere. Political ructions in the UK over Brexit continue to keep a lid on risk appetite too.

The 30-year Treasury yield slid to a new record low of 1.907% on Wednesday before tracking back a little higher. Obviously, the acceptance of such tiny rewards for long-term lending hardly suggests that bond investors are hopeful of much growth ahead, but the real problem remains in the spread between two and ten-year debt. Here the feared inversion of the yield curve goes on. This means that longer-term debt yields less than short paper, a situation which in the past has reliably signaled recession.

It was always going to be tough for any news-flow to negate this huge worry and sure enough none did Thursday. The Nikkei 225 was down 0.2% as the Tokyo afternoon session kicked off, which was about par for the course across Asia. The Shanghai Composite was off by 0.1% as was Australia’s ASX 200. The Aussie index was hit by weakness in Woolworth’s shares which slipped considerably following the release of results.

A modest Wall Street fightback Wednesday wasn’t enough to lift Asian spirits.

The foreign exchange market saw a calm Asian session in which the Japanese Yen fought back a little against a US Dollar which had managed to rise towards the end of Tuesday action in the US. With risk appetite bruised the Australian and New Zealand Dollars also inched lower.

NZDUSD has endured 15 down days out of the past 21.

New Zealand Dollar Vs US Dollar, Daily Chart

The current downtrend is itself merely an extension and acceleration of the falls seen since mid-July.

The aftershock of this month’s heavy, half-percentage-point interest rate cut from the Reserve Bank of New Zealand is still to be seen, adding to the effects of general risk aversion. For as long as trade worries drive the market it is hard to get bullish on either the Kiwi or the Aussie.

The coming European and US trading day will offer plentiful economic interest, with top billing probably due to the revised second-quarter GDP figures out of the US.

Asia Pacific Stocks Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES

News & Analysis at your fingertips.