The dollar traded near flat ahead of Fed Reserve minutes

on Nov 20, 2019
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  • The USD traded near flat in Asia as traders remained cautious ahead of the release of Fed Reserve minutes
  • The tension between the USA and China rose further after the U.S. Senate passed two Hong Kong related bills
  • China was pessimistic about reaching a trade deal with the U.S.

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The USD traded near flat on Wednesday in Asia as traders remained cautious ahead of the release of Fed Reserve minutes due later in the day.

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The U.S. Dollar Index last traded at 97.9 by 05:20 GMT, up 0.02%. 

Another warning from Trump dashed hopes overnight. He said he would raise tariffs should they not reach an agreement.

The tension between the USA and China rose further after the U.S. Senate passed two Hong Kong related bills that support protesters in the city.

The Chinese foreign ministry spokesman said the decision was blatant interference in China’s internal affairs. He said that the U.S. would face negative consequences if the persisted.

Earlier this week, CNBC reported that China was pessimistic about reaching a trade deal with the U.S.

Trade headlines are dominating sentiment, but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund in a Reuters report. He is a senior F.X. strategist at Nordea.

The USD/CNY pair rose up 0.1% to 7.0277.

The AUD/USD pair dropped to 0.6813. Minutes published on Tuesday showed that the RBA “agreed a case could be made” for another rate cut in the 0.75% cash rate at its meeting in November.

The NZD/USD pair also lost 0.2% to 0.6419.

The USD/JPY remained stable at 108.51. Today, data from the Ministry of Finance showed that Japan’s exports fell 9.2% in October from the previous year. It’s a big decline compared to the expected drop of 7.6%.

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