Forex news for Asia trading Tuesday 11 June 2019
- NZ government is considering a conditional ban on the live export of cattle
- Westpac on their call for AUD/USD to 0.66
- China is to announce a cut to gasoline prices on Wednesday
- BoA analysis suggests 50bp Fed rate cut in July. But no, Fed will delay until September.
- Oil traders - heads up for the OPEC+ meeting late June
- AUD back to its lows - business confidence boost can't make up for poor details
- Australian business confidence rises to 7 from 0 previously
- A bit of surprise at the USD/CNY reference rate setting today - AUD pop
- Being Japanese PM is not all sunshine and lollipops. Abe to visit Iran this week.
- People’s Bank of China sets yuan reference rate at 6.8930 (vs. yesterday at 6.8925)
- FX option expiries for the 10am cut (NY time) Tuesday 11 June 2019
- PBOC says it'll sell CNH bills in HK later this month - here's why
- Goldman Sachs on oil, OPEC, Russia, Saudi. Hard road ahead for extension of output pact
- Some levels to eye for AUD/USD
- Japan press reports that PM Abe has decided against a double election
- Brexit - UK construction firms report having almost a third less work in the pipeline than a year ago
- Japan media report on US - Japan trade niggles (autos)
- China Securities Journal says more PBOC support may be on the way for small banks
- Goldman Sachs on Mexico - wary of a central bank rate cut with little warning
- NZ Q1 data - manufacturing activity up in the quarter
- BlackRock on US-China trade war: 'a cloud over China’s growth outlook'
- NZ data - ANZ Truckometer (Heavy index for May): +0.8% m/m (prior + 4.0%)
- HK press reports US President Trump concerned Chinese getting way ahead of the US
- Gold - "downside should be fairly contained" - $1300 the level to watch
- Goldman Sachs boosts up its euro forecast
- Trade ideas thread - Tuesday 11 June 2019
- Bank EUR/USD outlook (quick one)
There has been some pressure increasing on China for allowing the yuan to slide, and today the PBOC set the reference rate about 150 points stronger than had been expected. Expectations were for a mid-rate circa 6.9080 but we got the setting at 6.8930. The benchmark 'risk barometer" AUD/JPY popped higher on the rate, with AUD/USD up around 15 points and USD/JPY higher also. Since the rate set USD/JPY has maintained its gains, from lows circa 108.35 it hit highs above 108.60.
AUD/USD did not hold on though. It was briefly supported by headline business confidence up 7 points (May NAB Business Survey data) but the survey details were weak. AUD/USD headed back towards earlier lows, gained back a few points on some stimulus news from China (gasoline price cut to be announced Wednesday) and is currently more or less mid range for the session.
NZD/USD is sitting on its lows for the day.
EUR/USD, GBP/USD and USD/CAD are little changed. USD/CHF is a few tics to the better.
USD/CNH 5 minute candles - after the unexpected mid rate CNY strength:
