Forex news for Asia trading Tuesday 10 September 2019
- Citi on trade war impact on oil demand growth - cut of 800k bbls/day
- Sky reports China threatens military response if UK warships go near disputed islands
- Japan finance minister Aso comments on capex. Highlights trade war risks still.
- ECB meet Thursday 12 September 2019 - preview
- China CPI for August: 2.8% y/y (expected 2.7%)
- Australian August Business Confidence 1( vs; prior 4)
- Huawei has dropped one of its lawsuits against US Govt over seizure of telecom equipment
- PBOC sets USD/ CNY reference rate for today at 7.0846 (vs. yesterday at 7.0851)
- FX option expiries for Tuesday September 10 at the 10am NY cut
- Fitch says APAC sovereigns mostly stable in face of rising growth risk
- The WSJ carries another positive piece on the Australian economy
- ICYMI: Mnuchin says yuan will be in focus in next round of China talks
- Further RRR cuts expected from the PBOC - and a higher USD/CNY
- US President Trump addressing a rally says China wants to talk
- Russia’s energy minister Novak is due to meet with Saudi Prince Abdelaziz today
- Fitch slash growth rate forecasts for China, US, , and Eurozone
- Brexit - UK Parliament vote against Boris Johnson's request for an early election
- Australia - ANZ Roy Morgan Weekly Consumer Confidence: 113.3 (prior 114.4)
- China Daily - says China hopes the US can create conditions for trade talks
- Here's what to do if AUD/USD reaches 0.6800
- New Zealand Card Spending for August: Retail +1.1% m/m (expected 0.5%)
- North Korea test fires missiles again
- Brexit - UK's Liberal Democrats to officially back revoking article 50
- Brexit - Boris Johnson says he will not ask for another delay
- New Zealand - ANZ Truckometer for August: -4.2% m/m (prior +4.1%)
- Goldman Sachs on Brexit - base case is UK leaves the EU with a deal by 31 October
- Trade ideas thread - Tuesday 10 September 2019
- Index compiler MSCI buys Zurich-based climate research firm
Brexit news dominated the early hours of Asia, obviously evening in the UK, as Boris Johnson brought on a vote for an early election. The Prime Minister lost the vote, for a 100% loss record on the six votes he has called. Earlier on Tuesday the bill requiring Johnson to ask the EU for an extension (should a 'deal' not be reached) was signed into law. The UK day drew to a close with Johnson vowing not to extend the Brexit date and suspending parliament for five weeks. More in the bullets above. Check your cable chart - through all the evening's activity GBP flatlined.
Fresh news following this was light, although we did get a number of data points. Of most significance for markets were the inflation data from China (CPI little changed, PPI plunged) and business confidence from Australia (lower on the month). The Australian dollar dropped after the data, albeit the range has been small, and it not far from its session low as I post. Kiwi has managed to add on a few points.
EUR and CHF are both a few points softer against the USD, as is CAD.
USD/JPY was notably bid through the morning in Tokyo, it hit highs circa 107.50 just after the Tokyo fix and has stabilised around 107.40 since.
Gold lost ground further, extending below 1500USD.
