Forex news for Asia trading Wednesday 10 July 2019
- South Korea's Moon bracing for a prolonged battle on Japan trade
- Not all bad news on trade - ICYMI US exempts some medical, electronic devices from China tariffs
- Meanwhile, Bitcoin above 13K USD
- NZD marked lower, stops taken out on seller under 0.6600
- Nat West expect the FOMC to cut interest rate by 25bp - inflation well below target
- More on US arms sale to Taiwan. China wants it cancelled.
- China June inflation data: CPI 2.7% y/y (expected 2.7%) & PPI 0.0% y/y (0.2% exp)
- PBOC sets USD/ CNY reference rate for today at 6.8856 (vs. yesterday at 6.8853)
- BNP Paribas forecast for the FOMC: 2 Fed rate cuts in 2019 & 1 in 2020
- Trump to Xi - "Buy more of our stuff". Xi to trump "No".
- China issues a (bland) statement on phone call between Liu He, Mnuchin and Lighthizer
- Australia Westpac monthly Consumer Confidence Index for July: -4.1% m/m (prior -0.6%)
- Japan - PPI for June: -0.5% m/m (expected -0.1%)
- China Securities Journal reports some banks have been asked to limit lending for property
- Goldman Sachs new crypto business is looking to go “further than ever before”
- New Zealand Food Prices for June: -0.7% m/m (prior +0.7%)
- New Zealand's Trade me says number of job ads down 7.7% in theQ2 2019
- Turkey's President Erdogan says central bank head did not communicate well with markets
- White House says the trade call between US, Chinese officials was constructive
- MXN - Moody's on the resignation of Mexico's finance minister
- More from Kudlow - comments on China (not buying more US goods yet) and Fed (cut ze rates!)
- ICYMI - White House Kudlow says US and China may never reach a trade deal
- ICYMI - Goldman Sachs says ECB return to large-scale QE is complicated … but ….
- Trade ideas thread - Wednesday 10 July 2019
- Oil - private inventory data shows larger than expected draw in headline stocks
NZD/USD (and NZD crosses alongside) was dropped by a large sell order under 0.66. The pair hit lows circa 0.6570 as the selling was absorbed, in the meantime taking out stop-loss orders extending below 0.66. There was no news to act as a catalyst. The rebound from lows was nearly as swift and as I post its sitting above 0.6590.
Earlier on in the session USD/JPY had popped its overnight (Europe/US time) high and approached 109. The only item of interest out of Japan was the PPI figure for June, a disappointing one (aren't we accustomed to that by now though?) .
AUD data today was consumer sentiment (month of June). It fell a substantial (for this indicator) greater than 4% on the month to slip into net negative territory and to a 2-year low. The survey for it was conducted after the RBA had cut its cash rate in the first week of the month and as tax cut legislation was being ushered through parliament. So, yes, despite the ostensibly good news sentiment slipped. The data release is never a big forex mover and saw the AUD down just a few tics. The rest of the session saw it in a small range only.
Small ranges prevailed elsewhere too, EUR, GBP, CHF, CAD. Bitcoin extending its rally to above 13,000 USD. Oil rose after the release of private survey inventory levels. Gold drifted down a few dollars.
Don't forget, ladies and gentlemen, Fed Chair Powell speaks Wednesday US time. Bank of Canada meeting also.
Still to come:
