ForexLive Asia FX news wrap: PBOC smash CNY 300+ points higher (not manipulation)

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Monday 14 January 2020 

The US Treasury semi-annual currency manipulator list was published in the early hours of Asia. After including China as a manipulator in August the Treasury removed the country this time around. Ahead of the phase 1 trade deal to be signed on Wednesday. Group hug!

To be fair the inclusion of China on the list last year was ... a stretch ... but the grovelling removal today at least rights that. It also removes any last shred of credibility the US Treasury report had, so there is that. Please excuse my contempt for the once credible institution.

The most notable news item of the day was a report in Politico outlining the terms of the upcoming trade deal (see bullets above). On the data front we got the December trade balance from China which showed a surge in exports and an even greater surge in imports. If the data is to be believed (why wouldn't it be?) its a huge (positive) shock result and augers well for 'risk'. 

Major FX ranges were not large but we had a notable move in USD/JPY, above 110 for the first time since May of 2019 and its managed so far to sit above there as I post. AUD and NZD (against the USD) drifted sideways before losing some ground and then recovering to be net barely changed on the session. EUR, GBP and CHF are llittle changed also. Gold lost more on the session following a poor overnight effort. 

I posted this earlier, but ICYMI - how the tariffs will reduce under the phase 1 trade deal (you may have to look really closely):

Forex news for Asia trading Monday 14 January 2020 e

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose