Forex news for Asia trading on Friday 10 September 2021
- Chinese state media says Presidents Xi and Biden had a broad, candid talk
- China's President Xi and US President Biden spoke on a phone call
- WSJ cite analyst expecting US 10 year yield to head higher
- China state TV says President Xi wants improved trade relations with ASEAN countries
- Despite all the worries over China crackdowns, Shanghai Composite on approach to a 5 year high
- A hopeful (but small) sign relations between China and Australia may warm
- PBOC sets USD/ CNY mid-point today at 6.4566 (vs. estimate at 6.4570)
- Australian state NSW records a record high new case count. Plans to ease restrictions for the fully vaccinated.
- ANZ says GBP undervalued and supported. BoE rate hike still a year away.
- Another ship became stuck in the Suez Canal. Happened Thursday, unstuck quickly though.
- China's President Xi Jinping war on the "disorderly expansion of capital"
- U.S. Energy Department has loaned Exxon another 1.5m barrels of oil
- TD see further range trading ahead for EUR/USD
- Peru's central bank hikes rates by 50bp, to 1.0%. As expected.
- Los Angeles mandates all children 12 and older in public schools must be fully vaccinated against COVID-19
- NZ data - Retail card spending -19.8% m/m (lockdown impact)
- Australia mulls breaking agreement with China over port lease - wary of risks
- ICYMI - ECB leaves key rates unchanged but tapers QE
- Fed's Rosengren also says he'll sell his individual stocks by September 30
- Fed's Kaplan says he will sell all individual stocks he owns. Invest in tracking funds, cash
- US President Biden to decrease hospitalizations and deaths, and keep schools and economy open
- Trade ideas thread - Friday 10 September 2021
- Economic calendar due from Asia today - Friday 10 September 2021
- Dow, S&P lower for the fourth straight trading day
The leaders of China and the US spoke for the first time in going on 7 months today, the readout from the US side said it was a 'broad, strategic discussion'. Those are the discussions you have when you can't agree on much I guess. There is more of the White House readout of the call in the bullets above. China's readout confirmed there was more disagreement than agreement.
'Risk' FX and equity markets liked the fresh dialogue when the news first broke. Regional equities had already been having a positive session (not all, it was mixed) prior to the news of the call breaking. Currencies though had been subdued. On news of the call AUD/USD, for example, popped circa 20 points to a session high just under 0.7385. EUR, GBP, NZD, CAD all added a few points also.
News flow otherwise was non-impactful. US President Biden had spoken during the US afternoon on his new coronavirus plan, in a nutshell mandating vaccinations for Federal employees (there are substantial 'nuances' in the mandate, its not as wide as might be thought) and vaccinations &/or tests for firms employing 100 or more people.
Data flow was also non-impactful (there was not much at all).
On the central bank front, check out the posts on Kaplan and Rosengren announcing they'd cease trading in individual stocks while running their respective Fed branches.
Regional equities:
Japan's Nikkei -0.5%
China's Shanghai Composite +0.6%
Hong Kong's Hang Seng +1.6%
AUD response to the phone call news (red arrow):
