The U.S. dollar rose on Wednesday morning in the Asian region. The situation comes after many investors digested economic data from China as well as the impact of the presidential debate. The debate took place between US President Donald Trump and Democratic nominee Joe Biden.
The U.S. Dollar Index, which tracks the greenback against other currencies, rose 0.05 percent to 93.977. However, existing profits are still limited by month-end currency flows as well as the quarter. However, indeed the numbers in the market are still volatile or can change again.
The debate, which took place some time ago, was the first of three scheduled ahead of the presidential election on November 3rd,. It appears that Trump and Biden vigorously debated issues such as Trump's leadership, the COVID-19 pandemic, the economy, and taxes.
It's Hard to Determine Who Leads
Interestingly, many investors are still unsure as to who won the last night's debate. It means that no candidate has scored a convincing lead. It looks like they're both just insulting each other. There wasn't much impact on the market because of the moment.
It is what Japan's head of market research J.P. Morgan Tohru Sasaki said when interviewed by Reuters. Investors are also now more focused on the progress of the U.S. Congress toward ratifying the latest $2.2 trillion fiscal stimulus bill proposed by Democrats on Monday.
This hope resurfaced after U.S. House of Representatives Speaker Nancy Pelosi said on Tuesday that a deal with the Trump White House could be possible this week. Further talks are scheduled with Treasury Secretary Steve Mnuchin at a later date. Many people wait for it.
However, some investors are not optimistic that the bill will be passed by Congress in its current form. They believe the stimulus bill is unlikely to develop in its current formation. If it is passed, it is possible that some points in the draft will be amended.
USD and the Developments of Several Currencies
The House Democratic stimulus bill is more than $1 trillion above what major Republican policymakers want to consider. On the other hand, the U.S. economic recovery will not be able to be healed smoothly without it. This could have an effect on the major currencies.
According to many analysts, the USD is vulnerable to additional increases in the short term. It was also approved by Commonwealth Bank of Australia currency analyst, Kim Mundy, in a note. In addition to the Dollar, some other currencies or pairs in Asia have also changed.
The USD/JPY pair fell slightly by 0.12% to 105.52. Meanwhile, the USD/CNY pair also fell slightly by 0.05% to 6.8119. China's purchasing managers' index (PMI) for September, released the previous day, remained above the 50. It indicates china's continued recovery from the impact of COVID-19.
Although the normal manufacturing PMI was 51.5, it beat forecasts of 51.2 and a reading of 51 in August. The non-manufacturing PMI was 55.9 against August 55.2. Besides, Caixin's manufacturing PMI touched 53 which were slightly below the forecast of 53.1 and the August figure of 53.1.
Other Data on the Market
The AUD/USD pair reportedly fell slightly by 0.13% to 0.7117. A different thing happened to the New Zealand Dollar. This currency increases for the nowadays situation. Based on the data, the NZD/USD is rising from 0.03% to 0.6588.
The ANZ Bank survey showed that the New Zealand business sentiment improved in September. It is for sure a great situation for the economy there. It is because the COVID-19 figure in the country remains low. Elsewhere, the GBP/USD pair fell 0.17% to 1.2839.
Initially, the Pound saw expectations of a hike in relation to the Brexit (Britain Exit) deal with the European Union (EU) rise on Tuesday. However, the increase turned to bank governor Andrew Bailey's openness to introducing negative interest rates if needed.
