Forex news for Asia trading on Thursday 12 August 2021
- RBNZ Q3 inflation expectations rising again
- China government-affiliated economists say PBOC should cut interest rates
- Fitch rating agency affirms Japan at 'A'; with outlook negative
- Japan producer level inflation data recap - highest in 13 years
- National Australia Bank expect a strong bounce for economy once restrictions eased
- Australia's capital city Canberra to go into coronavirus lockdown today
- PBOC sets USD/ CNY reference rate for today at 6.4754 (vs. yesterday at 6.4831)
- Australia coronavirus - NSW state records 345 new cases of COVID-19 infection
- Australia survey of consumer inflation expectations for August: 3.3% (prior 3.7%)
- Canada international travel vaccine passport to be ready within months
- US Deputy Secretary of State Sherman will meet with China's ambassador to the US on Thursday
- Morgan Stanley bring forward their expectations of a Fed rate hike (still in 2023 though)
- Japan PPI for July +1.1% m/m (expected 0.5%)
- BlackRock on US equities - turn neutral (& upgrade European equities to overweight)
- US FDA set to approve a third vaccine shot for people with compromised immune systems
- UK news ICYMI - Self-isolation for fully vaccinated close contacts to be scrapped from Monday
- UK data - RICS monthly house price balance for July 79% vs. prior 83%
- ICYMI - China credit growth slowed in July
- NZ data: New Zealand Food Price (inflation) for July: +1.3% m/m (prior 1.4%)
- NZ PM Ardern lays out plan to speed up vaccination rollout
- Another Australian state widens access to vaccinations for all adults
- US Treasury Secretary Yellen to visit China (maybe)
- NZ house price data for July, median +2.4% m/m and +25.1% y/y
- Trade ideas thread - Thursday 12 August 2021
- ICYMI - China is to strengthen its anti-monopoly laws (antitrust and unfair competition)
- S&P and Dow close (again) at new highs. Nasdaq recovers but still lower on the day
- US President Biden says he is not worried about the debt ceiling. Republicans will not allow the US to default.
It was a subdued day across major FX here in Asia with very small ranges prevailing and little net change across the board.
On the data front we had Japanese PPI hitting its highest in 13 years but with little discernible impact on the yen. Consumer level inflation in Japan remains straddling zero.
News flow was light, we saw a decline in new coronavirus case reports from China and a widening of restrictions in Australia (capital city Canberra will enter a strict 7 day lockdown from 5pm today local time after reporting its first case in a year; just one case).
For regional equities, Japan's Nikkei225 is up while China and Hong Kong are both down (tiny).
Gold straddled its technical level of 1750 from earlier in the week:
