Forex news for Asia trading on Wednesday 13 October 2021
- China trade data release (sort of) ... YTD imports and exports both up 22% y/y
- US to reopen land border with Canada in November
- Morgan Stanley upgrades China property to ‘attractive’ - says default risk largely priced
- PBOC sets USD/ CNY mid-point today at 6.4612 (vs. estimate at 6.4613)
- Standard Chartered weighs in on Evergrande - China will not allow it to become a systemic crisis
- New Zealand - ANZ business confidence for October, preliminary: -8.6 (prior -7.2)
- Japan Core Machinery Orders for August -2.4% m/m (expected 1.7%)
- Australia - Westpac Consumer Confidence Index for October: -1.5% m/m (prior +2.0%)
- The bill to increase the US debt limit has passed in the House - deal done
- Japan manufacturer sentiment has hit a 6-month low (Reuters Tankan for October)
- Hong Kong stock exchange delays morning trading session due to typhoon UPDATE - morning session cancelled completely
- US Treasury Secretary Yellen says again she believes inflation is transitory
- Fed's Barkin says price rises are being driven by shortages
- White House says Biden Administration is embarking on ‘Aggressive’ move on cryptocurrency
- UBS on the iron ore price rebound - says underlying demand is still not that strong
- Australia's Treasurer Frydenberg: Expect a 3% (or more) contraction for Q3 GDP
- Fed's Quarles will no longer be Vice-Chair of Supervision from October 13
- New Zealand Food Price (inflation) for September +0.5% m/m (prior +0.3%)
- Trade ideas thread - Wednesday 13 October 2021
- Fed's Bullard says supports beginning tapering in November
- Apple shares fall 1% after hours on chip shortage
- Apple said to be slashing iPhone production due to semi chip shortage
EUR/USD and GBP/USD both moved higher by a decent amount (for the Asian timezone) during the session while USD/JPY dribbled 25 or so points to the downside. CAD, AUD and NZD all underperformed compared with EUR, GBP and yen.
Commodity markets in China saw drops on the session which contributed to the weakness for these three. Coal had gained earlier on further supply concerns (floods shutting some mines) but this strength has since reversed. Iron ore and other metals dropped. China's Customs bureau flagged concerns over Q4 trade growth which was a factor in the declines (but it began prior to these).
The US debt limit raising vote passed through the US House, as was expected (the Democrats majority ensured this) after passing the US Senate late last week.
Still to come ahead:
- Economic data due from the US Wednesday 13 October 2021 - inflation the focus
- Federal Reserve speakers coming up on Wednesday 13 October 2021 (FOMC minutes too)
And, still come but further ahead:
- Australian jobs data due Thursday 14 October 2021 - preview - due Thursday Asia time
- Monetary Authority of Singapore half-yearly policy statement due Thursday Asia time - preview
- New Zealand inflation data for Q3 - early preview - due next week
EUR:
