Forex news for Asia trading Tuesday 1 September 2020
AUD traders - heads up for the Reserve Bank of Australia policy announcement due soon
- Trump says firms' support for BLM is weak as another man is shot dead by police in the US
- The USD weakness is extending further on the session here
- Japan's foreign minister says hopes to reach broad agreement on FTA with UK before next PM is chosen
- China - Caixin/Markit Manufacturing PMI for August: 53.1 (expected 52.5)
- Australia Q2 BoP current account balance: AUD +17.7bn (vs. expected AUD +13.0bn)
- Australia Building Approvals for July +12.0% m/m (expected -2.0%)
- PBOC sets USD/ CNY reference rate for today at 6.8498 (vs. yesterday at 6.8605)
- FX option expiries for Tuesday September 1 at the 10am NY cut
- Taiwan press reports that mainland China is sending fighter planes to the Taiwan Strait every day
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- Japan - Jibun Bank/Markit Manufacturing PMI (final) for August 47.2
- South Korea exports in August down 9.9% y/y
- Japan Capex for Q2: -11.3% y/y (vs. expected -4.0%)
- Japan Jobless (Unemployment) rate for July: 2.9% (expected 3.0%)
- Australia weekly consumer confidence: 90.2 (prior 92.7)
- Japan chief cabinet secretary Suga intends to continue with Abenomics, response to coronavirus
- Latest coronavirus case update from Australia (state of Victoria) is 70 new cases
- South Korea fin min says will intervene to stabilise markets if necessary
- Australia - CBA/Markit Manufacturing PMI for August 53.6 (final)
- New Zealand Building Permits for July: -4.5% m/m (prior +0.5%)
- Australia - AiG Manufacturing PMI for August: 49.3 (prior 53.5)
- Japan politics - chief cabinet secretary Suga to declare candidacy for PM position
- US coronavirus relief negotiations - further indication of deadlock
- GBP - UK Chancellor Rishi Sunak is considering a 5p hike in fuel duty
- US Treas Sec Mnuchin says he hopes McConnell will introduce another coronavirus relief bill next week
- Super dovish Fed and super dovish RBNZ; 2 factors account for why the NZD is up against the USD
- Trade ideas thread - Tuesday 01 September 2020
- AstraZeneca plans its vaccine test on 50,000 enrolment
An announcement from vaccine developer AstraZeneca set a supportive stage for risk as US markets shut down for the day and very early Asia kicked off in NZ and Australia. Upon reopening though overnight US stock index trade was a touch weaker, but soon recovered.
Currencies had some minor shuffling about but net have gained strongly (for an Asian session) against the big $ on the day. Cable is at its highest since December of last year, AUD/USD has surpassed its overnight high (highest for two years) while offshore yuan gained to its best since July 2019.
CAD, yen, CHF, NZD are all up against the USD on the session also.
And EUR? Up against the USD also, falling just shy of testing the 1.2 level where large option interest is holding it for now. Asia rarely has the firepower to take on such big levels, but it does seem to be just a matter of time (and cracking through the option defence).
Even gold had a good session.
News flow was limited but we did get a barrage of data, PMIs, Australian GDP 'partials' (inputs to the Q2 GDP due Wednesday) - all in the bullets above. But the story of the day is US dollar decline further.