Forex news for Asia trading Tuesday 14 July 2020
- More China trade data, this time in USD dollar terms
- Long AUD - WPAC model 'refuses to quit'
- China Customs spokesman says China is committed to implementing trade deal with the US
- China June trade data, exports +4.3% y/y, imports +6.2% y/y (yuan terms)
- US coronavirus - US is extending its border crossing restrictions with Mexico and Canada to late August
- Japan to spend 2.2bn yen from emergency fund on disaster relief (heavy rains)
- Australian state of Victoria confirms +270 new cases of coronavirus
- PBOC sets USD/ CNY reference rate for today at 6.9996 (vs. yesterday at 6.9965 )
- FX option expiries for Tuesday July 14 at the 10am NY cut
- ICYMI: US says China’s claims in the South China Sea are unlawful
- AUD/USD forecast to 0.72 over the next 3 months, to 0.73 in 6 - 12 months
- Australia - two Sydney metro areas will be declared virus hotspots - travel restricitons
- The week ahead for EUR - influences likely to be equity earnings, EU meeting, ECB meeting
- Singapore Q2 GDP -41.2% q/q (annualised), bigger contraction than expected
- Australia weekly consumer sentiment falls to 91.6 (prior 92.1)
- UK data - BRC sales like-for-like for June +10.9% y/y (vs. prior +7.9%)
- Job ads data from New Zealand continues its climb from lows
- Goldman Sachs EUR forecasts, "More confidence in sustained Euro appreciation"
- EUR/USD targeting 1.20 (quickie video)
- Further reports UK shoppers will be ordered to wear face masks in stores
- Trade ideas thread - Tuesday 14 July 2020
- US military is sending extra medical task forces to Texas to assist in coronavirus response
CAD was a loser during the session, weakening alongside the lower oil price as the Asian morning progressed. The background to lower oil prices are concerns that the escalation in the coronavirus outbreak in the US will dampen deamnd (it difficult to argue this is a fresh catalyst though). A meeting this week of OPEC's JMMC is likely to further progress the idea that oil production cutbacks could be unwound a little (this was in the news on Monday).
Its not as if the USD/CAD move is a big one, there was not too much of a range but ranges elsewhere for currencies were not much larger and many were smaller.
AUD/USD slipped a little with some bad virus numbers out of the state of Victoria (another +250 day for new cases, hospitalisations, ICU usage, ventilator usage all rising and these numbers will get worse in the coming week). AUD/USD has since retraced to net barely changed on the session. Australian business conditions and confidence continued their recovery in the data released today.
NZD/USD is a little lower. EUR and GBP continue to tiny range theme, bot just a touch down against the dollar.
USD/JPY is under 107.20.