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Asian Stocks drop vs North Korea Tension
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Asian Stocks drop vs North Korea Tension – FxPremiere
Asian stocks dropped but less than they have in recent days
North Korea continues to dominate market
Australian growth data met forecasts
Stock in Asia continued to decline alongside in New York, as worries about N Korea’s military continued to undermine global risk.
The Nikkei 225 was off 0.17% at the close with the ASX 200, Kospi and Hang Seng indexes all down too. Shanghai stocks were hanging on in the green zone but seemed to be slipping just into the red – Asian Stocks drop vs North Korea Tension.
In currency trade the US Dollar dropped further vs the Japanese Yen, this week’s 5-month low. Comments from Fed Reserve officials about subdued inflation didn’t help Korea-inspired risk aversion.
Some early pointers seemed to have investors primed for better news when that was forthcoming the Aussie dropped. It’s still homing in on the year’s high.
Gold prices remained steady, with a little re-think about how soon US interest rates could rise. Crude oil prices dropped back just a little from closures were again seen depressing demand.
Monetary policy decision from the Bank of Canada and from the US from the Institute for Supply Management continues its move forward.
Australian Dollar Back Under 0.83 vs US Dollar
- AUD/USD dropped back as Australian growth dropped to estimates
- Some data for the same period may have raised fake hopes
Gross Domestic Product rise to by 0.9% on the quarter, and 1.9% on the year of 2017 This matched capital market forecasts but, in the wake of some strong construction and export data for the same period, investors may have dared to hope for more. If so, they were out of luck. Still, the outcome is better than the first quarter’s respective gains of 0.3% and 1.9% and is not too bad given Hurricane Debbie’s.
Still, the Australian Dollar slipped back under US$0.79 on the news after rising this week.
The growth numbers come at a crucial juncture for the year’s Australian Dollar trade. Admittedly thanks as much to US Dollar weakness as anything else, AUD/USD has poked above a trading range which has limited progress in either direction for weeks.
However, as the pair pushes back towards its highs for 2017, which are also peaks not seen since 2015, the possible reaction of the Reserve Bank of Australia will be key. The RBA is not comfortable with the Aussie’s altitude which it sees as threatening both domestic growth and its own inflation-target mandate.
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