Forex news for Asia trading Wednesday 13 May 2020
RBNZ:
- NZD lower following the RBNZ monetary policy decision, near-doubling of QE program
- Minutes of the RBNZ meeting just concluded
- RBNZ leaves cash rate on hold at 0.25%, expands QE program
- Moody's says coronavirus challenges ahead for large Australian banks
- China's parliament opens on May 21 (no balloons allowed)
- Overseas arrival to Australia in April were down 99% y/y
- Australia Wage Price Index for Q1 2020: 0.5% q/q (expected 0.5%)
- PBOC sets USD/ CNY reference rate for today at 7.0875 (vs. yesterday at 7.0919)
- FX option expiries for Wednesday May 13 at the 10am NY cut
- A key transportation hub in China will temporarily suspend passenger services
- NZ PM Ardern says to invest more to get economy moving
- New Zealand export data update - exports slipping
- Australia - Westpac Consumer Confidence Index for May +16.4% m/m to 88.1
- ICYMI - US Senate moves to punish China on coronavirus
- Norway sovereign wealth fund - withdrawals will hit a record to hit to economy by the coronavirus pandemic
- Japan bought a record amount of US bonds in March
- Toyota expects to sell 7m cars this year, down from the nearly 9m last year
- Volkswagen will reduce output at its largest German factory this month
- South Korea number of employed fell at the fastest pace in more than 20 years
- Two Japanese COVID-19 drugs - Avigan and Camostat - getting a lot of attention
- UK card spending (Barclaycard) down 36% in April
- UK BRC says total retail sales fell by 19.1% y/y in April
- More from Fed's Mester - negative rates would not work well in the US
- University of Washington model now projects 147,000 US coronavirus deaths by August
- Germany's daily coronavirus case count has nearly tripled - harsh lockdowns may be reintroduced
- Gilead to make remdesivir coronavirus treatment in 127 countries
- More from Fed's Mester - wants to stay away from negative rates
- Australian Treasurer Frydenberg has tested negative for coronavirus after coughing fit
- Fed's Mester says further direct fiscal support is needed
- Fed Chair Powell to speak Wednesday US time - and again soon after
- Trade ideas thread - Wednesday 13 May 2020
- UK Chancellor Sunak considering increasing income tax, scrap pension rises, freeze public sector pay
- Private oil survey data shows a larger than expected build in crude oil inventory
- Stanley Druckenmiller says negative interest rates make no sense
- Coronavirus budget blowouts - UK edition: 337bn GBP deficit (vs. 55 expected)
- Overnight - LA County’s stay-at-home orders will be extended for the next 3 months
- That Iranian Navy ship hit by a friendly fire missile ... maybe not!
It was a weak sort of session for AUD and NZD following on from the same during US time (US-China tensions stoked yet again, this time by a US Senator) but the Reserve Bank of New Zealand monetary policy decision gave the kiwi $ an extra push lower.
The RBNZ left its cash rate on hold at 0.25% and provided projections of that rate to remain through to March 2021. The Bank did allow that the rate may go negative in the future (it appears they have concerns about how bank systems will cope with negative rates). The RBNZ also near doubled its QE program, from the current 33bn to 60bn (and allowed it could go higher still).
NZD/USD was marked down to lows under 0.6030.
There was plenty of news and data during the session but none of it too impactful on market movement.
AUD, as noted above, was weaker earlier but as I post is net little changed on the session. EUR, GBP also both little changed against the US dollar. CAD is a little higher.
A north-eastern city in China imposed partial lock down restrictions as cases flared (see bullets above)
Still to come is Reserve Bank of New Zealand Governor Orr press conference at 0300GMT.
