Forex news for Asia trading Tuesday 13 August 2019
- Hong Kong dollar approaching the bottom of its permitted trading band. Is this time different?
- Hong Kong's Lam says HK in chaotic situation
- Goldman Sachs expecting a bounce in iron price, boosts forecasts
- Australia July Business Confidence 4 (vs. prior 2) & Business Conditions 2 (prior 3)
- PBOC sets USD/ CNY reference rate for today at 7.0326 (vs. yesterday at 7.0211)
- Morgan Stanley analysts say FOMC will cut US rates in September & October
- Goldman Sachs analyst targeting near USD 14,000 for Bitcoin
- JP Morgan lowers its outlook for iron ore
- MAS comments on poor economic growth data from Singapore - not considering out of cycle policy meeting
- Singapore data: Q2 GDP -3.3% q/q (annualised), +0.1% y/y
- Japan PPI for July: -0.6% y/y (expected -0.5%)
- Want a million US dollars? Can you hack an iPhone?
- Australia - ANZ Roy Morgan Weekly Consumer Confidence: 115.5 (prior 115.8)
- More from RBA's Kent - a lower AUD still provides stimulus to the economy
- RBA's Kent says RBA is not targeting the unemployment rate with policy
- Lack of clarity on Brexit - sell GBP rallies
- RBA's Kent: Lower rates in Australia are easing financial conditions
- New Zealand Food Prices for July: +1.1% m/m (prior -0.7%)
- Here's a data blip in Australia that's getting some love
- 1.1371 and the EUR/USD - key point?
- Despite the Ford Mustang being such a great car here is why you shouldn't rush out and buy stock in FORD
- Goldman Sachs resident DJ does not see an impending economic crisis
- NZ house sales data for July, sales & prices up
- UK Telegraph poll shows 54% want Brexit 'by any means'
- Goldman Sachs lower their forecasts for AUD and NZD
- Trade ideas thread - Tuesday 13 August 2019
It was more of the same from the People's Bank of China today with a further weakening (but not as much as expected) for the onshore yuan at the daily setting for the reference rate.
Staying in China, Hong Kong's Chief Executive Carrie Lam described the city as being in a 'chaotic situation' as protests continued again. She went on to mention that further disruption would weigh on the economy, which is already happening. The Hong Kong dollar stayed on the weak side, although it is not yet at its trading pegged downside limit (7.85 for USD/HKD).
Economic growth in Singapore for Q2 was confirmed at negative q/q (-3.3% annualised!). The Monetary Authority of Singapore said there would be no inter-meeting policy meeting inserted into their schedule (next policy meeting is scheduled for October).
In Australia we got the monthly business confidence and conditions report (National Australia Bank Business Survey for July). Both continue to languish.
Across the forex space we saw a weakening for the yen, CHF and EUR despite the bad news from around the place; 'risk', at least in the currency space held more or less unperturbed on the session here. NZD/USD is softening a little as I update, off 10 points or so from its session high but not changed much net on the day. AUD/USD, too, little changed on the session. Cable is nudging a little lower.
Gold moved back above 1515 USD.
The forex moves on the session here seem to be setting up for something larger in Europe/US time. Got that feel about it (and Europe/US surpassing ranges in Asia is par for the course to be honest).
Still to come:
