Forex news for Asia trading Thursday 6 August 2020
- Another member of the US Congress tests positive for COVID-19
- Australian PM Morrison says cost of new coronavirus outbreak to the economy will be circa $7-$9b in Q3
- Japan PM Abe says coronavirus treatment options are expanding
- RBA bond buying again today (targeting 0.25% in 3 year bonds)
- PBOC sets USD/ CNY reference rate for today at 6.9438 (vs. yesterday at 6.9752)
- FX option expiries for Thursday August 06 at the 10am NY cut
- US Sec State Pompeo has ramped up his warnings on China
- Twitter has banned Trump Team until he removes misinformation post
- Australia (Victoria) new coronavirus cases today said to be 471
- LA will cut water and power to homes, businesses hosting unauthorised gatherings
- Analysts are calling the USD lower
- Amazon's Bezos sold $1.9 billion of his shares …. yours!
- Trump envoy wants a trade deal 'phase two' … with Japan
- More on US' Fauci expects tens of millions of coronavirus vaccine doses at start of 2021
- UK data - 23 year highs in job seekers
- Australian media report new coronavirus case reports will continue to surge
- Fed's Mester again - uncertainty around unemployment benefits is a risk
- US Senate leader McConnell says two sides are a long way apart
- Facebook says it took down a post from Trump as it broke COVID-19 misinformation rules
- Canada, US, UK, Australia, New Zealand discussed need to support global supply chains
- Trump confirms he is considering executive action on unemployment and evictions relief
- Fed's Mester says the financial system is in a good place to weather risk
- Meadows says stimulus negotiations are over for today, still no agreement
- US Trade Rep Lighthizer says he looks forward to continued trade talks with the UK
- Fed's Mester: There are many indications US economic activity slowed in recent weeks
- Trade ideas thread - Thursday 6 August 2020
- New York declares a state of emergency in 12 areas
- Fauci says its likely there will be tens of million of vaccine doses by the end of this year
We saw some early small flows into currencies out of the USD despite mixed news out of Washington on economic relief legislation negotiations. Trump has indicated he will take executive action (no details provided) on unemployment and eviction relief on Friday if Congress fail to reach agreement by then.
US infectious diseases expert Fauci was in the news, saying there will be a vaccine by year end and into Q1 of 2021; if he is correct that is encouraging news. He did say also though that large scale dosing (in the billions) is much further out.
As mentioned, currencies traded a touch higher against the dollar early. AUD/USD, for example added 20 points. PM Morrison outlined Treasury forecasts of a big hit to GDP and employment due to the stage 4 lock downs in Australia's 2nd largest city and state, Melbourne in Victoria, which saw the currency fall back to its lows. NZD/USD has been weaker.
AUD up early then gave it all back: