During the Asia Pacific trading session on the 2nd of January, 2019, Wednesday, the Yen was splashing in an upbeat momentum, while the Aussie dollars fumbled, alongside the Chinese yuan, as the Australian economy largely depends on Chinese exports.
As majority of the investors remained cautious on the first trading day of the year, Wednesday, the safe haven currencies like Yen and commodities like gold surged, while the American dollar appeared to be softening amid partial US government shutdown and a slower pace of interest rate hike.
During the Asian trading session, the Japanese Yen gain 0.3 percent against American Dollar, reigning at 109.39. Meanwhile, during the preparation of this report, Japanese Yen had been trading at 109.30 and the Australian dollar had been experiencing their biggest fall since January 16th, 2016, residing at 0.6987.
As investors had been leaning on to the risk-free trades, amid tempestuous swing in the stocks and currencies, the safe haven currencies like Japanese Yen and Swiss Franc gained during the past couple of weeks. A currency analyst at the Bank of Singapore, Sim Moh Siong, said, “It’s still difficult to be strongly positive given all the uncertainties.
Hopefully, there will be progress on trade talks but the market is cautious and that’s benefiting the safe havens such as the yen. ”