On Monday, markets in Asian Region were mostly trading higher as weaker dollar is generally deemed as the driver of bullish sentiment, supporting those riskier assets.
In Asian trading session, the dollar index was once as low as 92.15. After the Fed announced the latest monetary policy framework, investors expected that the Fed will maintain the low interest rates policy for a long period of time, hurting the outlook of the dollar. Following the momentum of last Friday, the US indexes futures remained strong.
Commodity currencies like AUD and NZD were good last week in the weak dollar condition, as well as the RMB. On Monday Asian session, the onshore price of the RMB has jumped to the level of 6.86, while the current offshore price has already broken the level of 6.85. For Yen, news of Japanese Prime Minister Shinzo Abe’s resignation last week has caused a short term slight move, but then stabilized. Due to the weakness of the dollar, gold price regained its uptrend and returned to the $1970 level.
Investors are also concerning about the new economic stimulus package from the US government. It is reported that US President Trump is willing to compromise regarding the scale by increasing the budget US$300 billion to US$1.3 trillion in total. However, it is still far below the target of US$2.2 trillion proposed by the Democratic Party. It is expected that the new package will not be passed in the Congress in the near short term.
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