ASEAN sovereign external liquidity pressures recede – Fitch

Dhwani Mehta FXStreet

According to the latest report published by the US-based Fitch Ratings on Friday, the Association of Southeast Asian Nations (ASEAN) is seeing reduced external liquidity pressures, considering a significant reduction in the foreign capital outflows.

Key points

“Capital inflows may be subdued in the coming year or two, and volatility could return in the near term - given the environment of heightened uncertainty.

External liquidity will, therefore, remain a ratings weakness for some ASEAN sovereigns.”

Market reaction

The upbeat report failed to lift the market sentiment, as traders remain cautious ahead of the critical US payrolls data.

USD/JPY trades flat at 109.10 while the AUD/USD pair ranges around 0.6950. The Asian equities are mostly lower while Treasury yields correct sharply after Thursday’s rally.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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