| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 00:30 | Australia | Retail Sales, M/M | October | 0.6% | 0.5% | -0.2% |
During today's Asian trading, the US dollar rose moderately against most major currencies. Meanwhile, the yuan fell 0.4% against the US dollar amid protests against covid restrictions in China.
The situation in China has led to a drop in demand for risky assets on world markets, which supports the dollar and yen, which are considered as safe haven currencies.
Protests took place in cities across the country, including the capital Beijing, as well as Shanghai, Xinjiang and Wuhan, which was originally the epicenter of the spread of COVID-19. Investors were concerned about how the government in Beijing would respond to the wave of civil disobedience due to the growing number of COVID cases.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.22% to 106.20. On Wednesday, Fed Chairman Jerome Powell is due to deliver a report on the prospects for the US economy and the labor market at the Brookings Institution event, which may give more information about the prospects for US monetary policy.
The yen rose 0.9% against the US dollar on the back of increased demand for safe haven assets, market expectations of a less hawkish position of the Fed and statements by the head of the Bank of Japan Kuroda. "Tightening labor market will help drive up wages ahead. It is hard to set real wage growth as a monetary target. There is no need to review the roles of the government and BoJ in the 2013 joint statement," Kuroda said.