Forex news for Asia trading on Tuesday 12 October 2021
- ICYMI - European Union is to push for an end to the exploitation of Arctic gas, oil and coal
- Note for the diary: China's President Xi Jinping and EU Council president Charles Michel to speak this week
- South Korean President Moon says need to focus on stabilising consumer prices
- 3 reasons for the weakness of EUR from Goldman Sachs
- More from the Bank of Korea after its on-hold decision earlier today
- Bridgewater says stagflation is "the real risk, and so many portfolios are massively exposed”
- China state media says coal inventories rising
- PBOC sets USD/ CNY central rate at 6.4447 (vs. estimate at 6.4455)
- Platts on oil: OPEC is producing far below what it said it would
- Australian September business confidence surges 19 points on the month to 13
- UBS on US jobs markets - nothing to stop the Fed from tapering
- NZ net debt was 30.1% of GDP on June 30th (forecast 34%)
- South Korea exports (first 10 days of October) +63.5% y/y
- Japan PPI for September 0.3% m/m (expected 0.3%)
- BRC sales data shows weaker performance - fuel shortage cited
- China September inflation data is due later this week - PPI expected to rocket higher. Preview.
- North Korean leader Kim Jong Un says no reason to believe the US is not hostile
- Australian weekly survey of consumer sentiment 105.6 (previous week 104.6)
- ICYMI - Overnight comments from ECB officials, all singing the 'transitory' inflation tune
- New Zealand - Retail Card Spending for September +0.9% m/m
- China's stern representations with Australia over "inappropriate" comments about Taiwan
- Monday was a US (partial) market holiday - sure didn't feel like it
- New Zealand data - ANZ Truckometer (GDP indicator) surged in September (still below normal though)
- Trade ideas thread - Tuesday 12 October 2021
- Qatar says they can't solve the LNG shortage - "We are maxed out"
It was a session of minor moves after the holiday Monday in North America (US stock exchanges were open) ... which was not much of a holiday for markets with big FX moves and some equity falls.
Forex movement here during Asia has been much more limited with small ranges prevailing and not a lot of net change.
News and data flow was not large either but there were some notable developments (that did not move FX as noted above).
- Japan wholesale inflation hit a 13-year high, this puts the squeeze on industry profits as costlier input prices are not being passed on to consumers (CPI remains moribund). This will weigh on business capex ahead, fewer profits mean fewer yen to spend on business investment.
- Business confidence in Australia in September bounced strongly, offset by a fall in business conditions. The 'conditions' measure is measured more objectively than the confidence sentiment.
- And this from China's NDRC - is pushing for all industrial and commercial users to enter the power trading market, in an orderly way.
- The world's largest seller of liquefied natural gas (LNG), Qatar said it is not in a position to supply more, its 'maxed out' says its energy minister.
- The Bank of Korea left its key rate unchanged at its policy meeting but did note more needs to be done on inflation in coming meetings.
Gold rallied to test its overnight high:
