Article by ForexTime
Markets were more stable on Friday as China’s decision to allow the Chinese Yuan reference rate to strengthen instilled a sense of relative calm.
The People’s Bank of China set the daily reference rate for the Yuan (also known as renminbi) 0.02 per cent stronger to Rmb6.5636. The move ended eight consecutive days of depreciation that spooked investors and unleashed volatility across global assets.
Japan’s yen, whose haven status saw it rally this week amid the volatility, fell for the first time in five sessions, weakening 0.5 per cent to Y118.20 per dollar.
The Australian dollar, which was impacted negatively this week since China is a major trading partner of Australia, rose back above $0.7070 per US dollar.
Commodity markets were also in recovery mode. Brent crude, the international oil benchmark, was sitting 1.2 per cent higher at $34.17 a barrel in Asian trade and on track for its first gain in five sessions.
Free Reports:
At one point on Thursday, Brent fell more than 6 per cent to $32.16 — its lowest level since 2003. West Texas Intermediate was up 1.4 per cent at $33.73.
Gold was on track to end a four-day winning streak, down 0.4 per cent at $1,104.75, as investors retreated from haven assets.
Equity markets moved higher today. Japan’s Nikkei was 0.4 per cent higher, while Hong Kong’s Hang Seng rose 0.9 per cent. Australia’s S&P/ASX 200 was down 0.6 per cent in afternoon trading in Sydney.
Investors will now focus on the all-important US nonfarm payrolls report due later on Friday.
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com