• USD firms on the rising yields
• Bitcoin reached $60,000 over the weekend but India will ban its trading
• China’s economic data released with impressive highlights
USD firms on Monday, as the DXY Index currently stays unchanged at press time after some fluctuations, with an opening price of 91.68. Over the weekend, it rebounded from 91.38 on Friday, supported but the rising yields. 10-year Treasury yield is currently trading at around 1.635% at press time, close to Friday’s top of 1.6420%. Economic data have been promising for the US, further boosting the yields. US producer prices had the largest annual gain on Friday, rising 0.5% for final demand – a 1.3% jump from January. On vaccination, Biden has ordered every state to make all adults eligible for the vaccine by May 1. Previously, only prioritized groups could be vaccinated, such as healthcare professionals, elderlies and students. Accordingly, investors are growing wary recently considering the massive stimulus that will take place soon. Inflation is expected to accelerate in the coming months and will likely exceed the Fed’s target at 2%.
Bitcoin briefly touched $60,000 over the weekend on March 13th but quickly retreated below that level on the following day. After some back-and-forth, it currently hovers around $60,030 at press time. Reuters today cited a senior government official saying that, India will soon propose a law banning the trading on cryptocurrencies and fining anyone who hold digital assets.
China has posted a series of economic data today with promising outlook. Its industrial output, investment and consumption in the first two months of 2021 were all higher compared with 2019 pre-COVID. Industrial output rose 35.1% YoY (16.9% compared with 2019), beating the forecast at 30.5%; retail sales soared 33.8% YoY (6.4% compared with 2019), beating the forecast at 31.3%; fixed-asset investments jumped 35.0%, missing the forecast at 38.2% but still 3.5% higher compared with 2019. However, unemployment rate rose from 5.2% to 5.5%. Steady recovery of China will help set the tone for APAC, especially supporting Australia’s export business and local currency.