Finally Forex market is observing stronger USD vs ASEAN FX. the beginning of 2021 has witnessed a weaker USD. However the recent scenario of Forex trading with minor fiscal stimulus and increasing patients of another wave of pandemic is trying to turn the table for USD. All these economic factors are contributing in strengthening USD. while on the other hand, the ASEAN FX is likely to be influenced by the economic data of China. Chinese GDP indicates economic growth by about 6%. This data is likely to affect the ASEAN FX.
Last week Review, USD Vs ASEAN FX:
Last week, traders have seen a mixed response of USD Vs ASEAN FX. US Dollar has managed to stand straight against TWD (New Taiwan Dollar), PHP (Philippine Peso) and IDR (Indonesian Rupee). While on the other hand, US Dollar struggled against Indian Rupee (INR). However US Dollar seems to bottom out against Asian currencies. The recent lock down will likely to influence the worth of US Dollar as well.
USA Fiscal Stimulus:
The forex traders have long been waiting and keeping a close watch on USA’s Fiscal Stimulus. Joe Biden has announced the relief package to deal with the Pandemic victims and its side effects. The relief package includes a 15% raise in the minimum wage. The increasing number of the victims of Pandemic seems to support the idea of more stimuli. The economy again seems helpless against the cruel claws of the virus. The disturbing jobless claims and data of consumer sentiments may seem to expose the concern of the higher authorities towards the stability of the economy. Thus changes are round the corner in the price of USD.
USD/IDR is keeping a close watch on the lending rates to be revealed by the Bank of Indonesia. It appears that the rate will continue to be at 3.75% and it will not likely to change in the near term. IDR is one of the prominent currency of ASEAN FX. This unchanged rate will obviously affect the ASEAN FX. But at the same time, the Central Bank will take some serious action to stabilize the worth of Indonesian Rupiah (IDR). If it happens then it will support the IDR.