Holidays in the US (President’s Day) and Canada (Family Day) kept activity muted, with the regional currencies/economies taking the focus, for a change.
Thai growth beats forecast
Thai economy grows faster than expected in the fourth quarter, gaining 0.8% quarter-by-quarter and 3.7% from a year earlier. This compared with forecasts of +0.7% and +3.6%, respectively. Thailand’s exports, for a long time the pillar of economic growth, suffered amid the US-China trade wars and a global slowdown, but this was compensated by a pickup in domestic demand. Growth for the full year was confirmed at +4.1% y/y.
The Thai baht appreciated to near its highest level in 10 months versus the US dollar and has risen 3.44% since the start of the year.
USD/THB Daily Chart
Source: OANDA fxTrade
The local currency may struggle to maintain the recent momentum as the country approaches uncertain times as a general election is due to be held next month for the first time since the military took over in 2014.
All quiet on the Eastern front
It was a slow, lackluster day’s trading in Asia, with investors and traders keeping one eye on the US holiday later today, with the volume and liquidity concerns associated with it. The risk mood was generally bullish, with the Aussie eking out small gains versus the US dollar, but seemingly lacking the momentum to convincingly test the 55- and 100-day moving averages at 0.7157 and 0.7164, respectively.
AUD/USD Daily Chart
Source: OANDA fxTrade
The yen fell marginally versus the US dollar and equity indices traded mostly in the black. China shares rebounded 1.1% after Friday’s 1.3% fall, while the US30 index climbed 0.13% higher.
The only data release during the Asian session was Japan’s machinery orders for December. They fell 0.1% m/m, well below economists’ estimates of a 3.5% gain and the first decline in three months.
UK house prices on tap
The only other data release for the rest of the day is the UK’s Rightmove house price index for February, which is expected to rise 0.7% from a month earlier and 0.2% y/y.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.