Forex news for Asia trading Wednesday 14 August 2019
- BOJ readying to ease further, sooner?
- Here's why the Fed may not be there for much longer to bail out markets
- China comments on the data: Economic growth is generally stable
- China July Industrial production +4.8% y/y (expected 6.0%) + other July activity data
- Goldman Sachs on the US delay to China tariffs
- Australia Wage Price index for Q2: +0.6% q/q (expected +0.5%)
- Barclays says it no longer working with Coinbase
- PBOC sets USD/ CNY mid-point today at 7.0312 (vs. yesterday at 7.0326)
- NZ monthly inflation gauge (ANZ) + 0.5% m/m on July (prior +0.3%)
- Hong Kong Airport have obtained an injunction to stop protestors obstructing movement
- Australia - Westpac Consumer Confidence for August: +3.6% m/m (prior -4.1%)
- Japan Core Machine Orders for June: +13.9% m/m (expected -1.0%)
- AUD view out of Singapore - has likely based
- More on UK speaker vows to stop UK PM from closing Parliament to force Brexit
- Air Force planes put on standby in case needed to evacuate citizens stranded in Hong Kong
- An Australian court may have just given the housing market a boost
- Australia’s Defence Minister says will increase production of rare earths
- BoA / ML assess the probability of a US recession within 12 months as one in three
- Brexit - Hammond wants PM Johnson to commit to a deal with the EU for exit
- Trade ideas thread - Wednesday 14 August 2019
- Private oil data shows surprise build in crude oil inventory
USD/JPY dropped on the session here after its huge surge overnight during US trade. Early movement saw it trade back to circa 106.75 but it has subsequently dropped to around 106.25. Data from Japan today came in showing a huge beat on (admittedly very volatile month-to-month) Machine Orders (see bullets above). How big a beat? The m/m result was the strongest ever in the data series, going back to 2005. A few minutes after the data yen began to gain and that continued until 106.25.
The data focus of the session, though, was 'activity data' from China for July. Industrial production and retail sales both came in at large misses, with a small miss on the investment data. China-proxy trade fell (AUD for example) but, as always, poor data from China tends to be cushioned by the expectation it'll prompt further stimulus from the country. AUD/USD dropped to its session low, briefly under 0.6780, before coming back to be not much changed, a few tics down, on the session around 0.6790 as I update.
Data from Australia today indicated an improved consumer sentiment in the month, and a slightly better result for wages growth in Q2 than expected.
EUR/USD has not done much at all, what it has done is flooundered around not far from its overnight low circa 1.1170. It does not look promising right now.
Cable is little net changed on the session, as is USD/CAD and USD/CHF. Kiwi is a few points to the better.
The People's Bank of China dialled back the CNY weakness today, setting the onshore yuan just a few tics stronger than Tuesday's mid-rate.
Gold is little net changed, Bitcoin dropped (see bullets above).
Still to come:
