Markets are in a calmer mood today, but Asian shares are finding reason to rally, helped by China’s promise to deliver on economic stimulus measures. Also adding to this report is a stronger correction in the Chinese yuan. In case you missed the subtitles, Eamonn has you covered here.

As such, the yuan is noticeably stronger today, but that hasn’t translated much into the rest of the major currency bloc:

The Aussie and Kiwi are just a touch higher, benefiting from a stronger yuan as noted above. AUD/USD in particular is seeing another bounce after testing its 200-day moving average yesterday. A key support level is currently at 0.6721.

At this point, we are starting to creep into territory where the markets will only focus on tomorrow’s Fed decision. This could contribute to a calmer mood in the following sessions. But if anything else, risk sentiment will be a key factor for trading during this time of change.

This article was written by Justin Low at www.forexlive.com.

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