This Thursday morning in the Asian market, the US dollar traded higher ahead of the G-20 summit.
At 05:00 GMT, the US dollar index rose by 0.2% to 95.875 against a basket of other major currencies.
On Wednesday, President Donald Trump said that if the trade discussion on Saturday morning with President, Xi Jinping does not prove to be successful, he might impose additional tariffs on other Chinese goods.
Contrary to the US dollar, the yen fell after Trump’s comment. As a result, the USD/JPY pair rose by 0.3% to 108.06.
Likewise, the AUD/USD and NZD/USD pair gained up to 0.2% and 0.1% respectively while the USD/CNY pair saw minimal change.
Bitcoin Continues to Rally
Following the same trend as the past weeks, Bitcoin continues its upward trend. Today in Asia, Bitcoin past the $13,000 level.
Though it peaked at $13,666.02 earlier this morning, at around 04:23 GMT, it reached $13,007.1 after it gained around 5.5%.
Analysts have attributed the recent gains in Bitcoin to Facebook’s plan to launch its own cryptocurrency “Libra” as traders hope the news could push cryptocurrencies into the mainstream.
In addition to the hype of Facebook’s own cryptocurrency, Libra, many analysts also attribute the recent gains to the Federal Reserve’s decision to cut interest rates in July.
Moreover, according to Chinese News Agency, Xinhua, investors look at Bitcoin as a safe-haven and this contributed to the recent gains.
Meanwhile, other analysts believe that aggressive buyers are the reason behind this rise.
However, the value of some of the other major cryptocurrencies were mixed this morning. While Ethereum was up by 1.8%, Litecoin and Ripple (XRP) dropped by 4.5% and 3.6% respectively.
Australia central bank might cut interest rates to 0.75%
The Central Bank of Australia is expected to cut its cash rate at least twice this year to 0.75% with the objective to boost growth and inflation.
Several economists are expecting the Reserve Bank of Australia (RBA) to cut the cash rate to 1.00% on Tuesday during its monthly meeting.
According to UBS chief economist George Tharenou, unemployment rate is a key driver for future rate cuts.
Though employment rate is at 2.6% per annum and the pace is not enough to reduce the rate of unemployment. As such, economists believe the central bank has to more in order to start generating wage pressures.
The RBA after three years eased its interest rate policy for the first time this month after global central banks have done the same or planned to do so.
The shift came after recent data showed that the economy was slowing.
Financial Events to watch for today
- 14:00 GMT – U.S. Pending Home Sales (MoM) (May) [USA]