Risk-On Tone Supports Commodity-Linked Currencies

Wednesday, September 19 – Asia Session Recap

During the Asia-Pacific session, commodity-linked currencies remained the outperformers. AUD, NZD and CAD all benefitted from the positive risk tone, stronger CNY and strength in commodities.

Comments from Chinese Premier Li further supported the positive risk tone. Stating that China will accelerate steps to opening up the economy.

Furthermore, Li added that China would not resort to forceful stimulus or engage in competitive weakening of its currency.

Elsewhere, GBP found brief support from PM May’s latest Brexit comments. According to the Express, PM May claims an exit deal is virtually agreed.

From the EU’s side, Barnier stated that the EU is ready to improve its proposal on Northern Ireland. Barnier also stated that they are on the home stretch on Brexit talks.

For additional research, we’ve posted news articles from around the web below.