Forex and Bitcoin news for Asia trading Wednesday 14 November 2018
- Some AUD and NZD levels to note (support, resistance)
- Bank of America / Merrill Lynch November Global Fund Manager Survey
- China comments on the Oct activity data - should continue policy steps to support
- China October Retail Sales 8.6% y/y (expected 9.2%)
- China October Industrial Production 5.9% y/y (expected 5.8%)
- China October Fixed Assets (excluding rural) YTD 5.7% y/y (vs. expected 5.5%)
- Bank comments on Brexit draft - expect cabinet to approve, but not parliament
- PBOC sets USD/ CNY central rate at 6.9402 (vs. yesterday at 6.9629)
- Australia Wage price Index for Q3: 0.6% q/q (expected 0.6%)
- US said to hold off on car tariff for now after Trump meeting
- More from Italy - govt says confident of hitting growth targets
- Japan economy minister Motegi: GDP fall due to natural disasters and exports fall
- Japan Q3 GDP (preliminary): -0.3% q/q (expected -0.3%)
- Australia - Westpac Nov. consumer sentiment: +2.8% m/m (prior +1.0%)
- UK Cabinet meet Wednesday, here is who is on board with the Brexit draft so far
- UK press reports Ministers Raab, Hunt, Javid, Gove & Cox will support Brexit Draft
- EU Trade Commissioner Malmstrom assumes no auto tariffs while negotiating
- More on the upcoming China - US trade talks
- The Italian government has kept 2019 budget targets for deficit and GDP growth unchanged
- More from Gundlach, bitcoin and oil comments
- Trade ideas thread - Wednesday 14 November 2018
- Jeffrey Gundlach says global stock market signals economic weakness
- More Brexit - DUP leader happy in opposing deal which weakens UK
Another active day for forex in Asia, but of course with limited ranges.
Brexit news hit during the US afternoon and we got some follow through news in early trading (pre-Tokyo), along the lines indicating some support for the UK PM's plan. GBP moved 50 or so points higher on reports some senior cabinet ministers were going to vote in support. Its since subsided 25-odd points as we await the UK morning's developments. Apart from today's Cabinet meeting (1400GMT) we get CPI data from the UK at 0930GMT.
EUR/USD also gained, without any obvious news (Italian budget to and froing continues, we got a few headlines as part of the negotiation process with the EU). A pop above 1.1290 say a quick stop loss driven spurt above 1.1310 and it has since calmed back to around 1.1300.
News also that US president Trump had decided not to go ahead with any action on auto tariffs following a Tuesday meeting.. There was very little detail at all, so keep an eye out for more on this.
Japanese data today showed the expected decline in Q3 GDP. Lower consumer spending, lower capex, decline exports, falling inventory. It was a sorry tale indeed but do note it comes after a solid Q2 results and in a quarter much impacted by sever natural disasters. The yen weakened a touch in the hour or so following the release, USD/JPY up circa 20 points only and not troubling 114 again.
Australian data showed still subdued wage growth. The Australian dollar had gained a little in morning Aust. trade but has since come back to be little net changed on the session. Sellers of AUD/NZD kept NZD/USD supported and it registers a small gain for the day.
The PBOC supported the onshore yuan at the mid rate setting today after yesterday's intervention, a drop of 227 points for USD/CNY from yesterday's reference rate. Chinese data today was, on the whole, a little soft - a miss for the retail sales and also the investment data and a small beat for industrial production.
Stay tuned for a busy session in UK/Europe and US time ladies and gentlement, previews below.
Still to come:
- Federal Reserve System Chair Powell is speaking Wednesday
- A heads up for a big UK Wednesday - Brexit cabinet meeting & inflation data
- PREVIEW: Big Brexit Cabinet meeting in the UK on Wednesday, but inflation data also
- US CPI data due Wednesday - preview
- After the Australian wage price data, now for the jobs report (tomorrow)
- Forex option expiries for Thursday and Friday
