Forex news for Asia trading Friday 3 April 2020
- Apple to keep all US retail stores closed until May
- Australian PM Morrison sounds an upbeat note - in suppression phase of coronavirus fight
- More from the PBOC: Virus shock to China's economy is temporary
- PBOC vice gov says need to consider CPI, other factors, before adjusting benchmark rate
- Why is New Orleans' coronavirus death rate twice New York's?
- Malaysia cuts its GDP forecast range to -2 to +0.5%
- NZ finmin Robertson on further government assistance for business (RBNZ QE info in this post)
- Business activity in HK was very poor in March, and April will not better.
- China March Caixin/Markit PMIs Services 43.0 and Composite 46.7
- ADB slashes its China 2020 GDP forecast to 2.3% (from 5.2%)
- Suzuki to extend plant closures in Europe, Asia
- PBOC sets USD/ CNY reference rate for today at 7.1104 (vs. yesterday at 7.0995)
- FX option expiries for Friday April 03 at the 10am NY cut
- Japan economy minister says aims for economic support package next week
- Australia Retail Sales for February 0.5% m/m (expected 0.4%)
- Japan - (final, March) PMI Services 33.8 and Composite 36.2
- Coronavirus - Washington's Gov extends the stay at home order through until May 4
- China - Wuhan chief warns coronavirus resurgence risk is high
- RBNZ Gov Orr says the Bank can increase stimulus if needed
- US Treasury guidance on lending package - its due to go live in around 12 hours
- S&P affirms US rating at AA+, outlook stable
- Trump comments on oil - hopes Russia, Saudi will reach deal to cut production
- US coronavirus economic package small business lending program begins Friday
- Friday will bring nonfarm payroll data from the US - Goldman Sachs preview
- Australia - CBA/Markit PMIs (March, final) Services 38.5 & Composite 39.4
- US Treas Sec Mnuchin says first support payments to be direct deposited within 2 weeks
- UK expands business loan scheme to medium-sized businesses
- Australia - AiG Construction PMI for March: 37.9 (prior 42.7)
- US President Trump was tested again for coronavirus - result was negative
- Trade ideas thread - Friday 03 April 2020
- Coronavirus - White House likely to issue guidance to wear face coverings
- US Federal Reserve asset purchases are stunningly large - recent data
- US balks at extending aid to mortgage servicers
There was plenty of follow-up news on the major market-impacting news during the Thursday US session. US President Trump doubled down on his assertion that Russia and Saudi Arabia would cut production by at least 10 million barrels, even by as much as 15 million - oil did not have the same historic price move up it had during the us session but nevertheless it moved higher (before drifting back to retrace the move).
The other huge item of note from the uS, the even more historic move higher in jobless claims garnered attrition here with plenty speculating next week could be a blockbuster number again; the failure of overwhelmed unemployment registration systems in the US is likely to see another huge claims number (note, keep an eye on continuing claims from next week also).
Also, but more stock market related, CAR (the largest car rental company in China) shares in HK dropped more than 50%. Company chair Lu Zhengyao is also chairman of Luckin Coffee, whose shares collapsed more than 80% during the US session with allegations of fabricated sales data. As I post CAR trade has been halted.
Despite all that, forex was, relatively, sedate. Ranges were reasonable for an Asian session but small compared to what we have seen in recent weeks. USD/JPY traded back above 108 and as I update is once again above the figure. EUR/USD, AUD/USD, NZD/USD traded more or less net sideways, all little changed. Note that the RBNZ announced plans to substantially beef up its bond buying (as part of its QE operation) next week (more here at this link).
GBP/USD is a few points lower on the session here. There was little of note in GPB news apart from the Chancellor extending the business loan scheme to medium sized companies. In business support news from the US the Treasury released its guidance on how to implement the small business lending package ion the US - banks have indicated they have not been given enugh notice to begin with the scheme at its scheduled opening time of Friday morning in the US.