15.03.2019: China welcomes foreign investment (USD, JPY, AUD, RUB)
Global investors are voicing concerns amid fresh evidence of sluggish business activity in China’s industry. Experts warn of an imminent slowdown in China’s and the global economy. At the same time, China’s domestic policy signals positive changes.
The government aims to shift the priority from foreign demand toward robust domestic consumption and development of the service sector. This policy has been pursued for long. It seems to have been a success. Amid a recovery of the housing market, prices of new homes surged in February to the highest level in the recent 21 months. It signals a revival of the construction sector and consumer activity.
Investors who are monitoring the trade talks between the US and China welcome news from Beijing. Yesterday Chinese legislators passed a law on foreign investment in China, thus giving in to Washington’s pressure. China’s economy and its investment climate is sure to benefit from active participation of the foreign business.
In this context, demand for safe haven assets are declining. Investors are revising their portfolios selling safe assets, including the Japanese yen. The dollar/yen pair is trading higher. The pair closed the Asian trade in a consolidation phase at near 111.70.
Today the Bank of Japan held a regular policy meeting. It released a policy statement with a widely expected decision to put its ultra-loose monetary policy on hold. The policymakers took such a decision citing global risks which hurt exports and moderate inflation.
The Australian dollar asserted strength in the Asian trade amid growing risk appetite. The AUD/USD pair again touched the resistance level of 0.7090. The pair could not break higher as its growth is capped by pessimistic expectations of the policy meeting of the Reserve Bank of Australia slated for Tuesday.
The Russian ruble opened on Friday with a steady advance. The Russian currency is hovering at 65.40 versus the US dollar as the oil rally is bullish for the ruble.
Today the economic calendar lacks macroeconomic data. So popular currency pair are likely to close this trading week at around current levels.
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