Forex news for Asia trading on Tuesday 15 June 2021
- US Retail sales data for May is due Tuesday, auto sales will be a drag
- Crypto ICYMI: Goldman Sachs intends to offer options and futures on Ether
- RBA June monetary policy meeting minutes - says AUD in narrow range despite rising commodity prices
- PBOC issues a 200bn yuan 1-year MLF at 2.95% (rate unchanged from previous)
- PBOC sets USD/ CNY reference rate for today at 6.4070 (vs. Friday at 6.3856)
- China says it does not pose systemic challenges to other countries
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- The US and Canada are to further discuss lifting border restrictions today, Tuesday 15 June 2021
- "The Brutal Truth About Bitcoin"
- 4 reasons for NZD/USD to trade higher (fair value model is 0.7420)
- Morgan Stanley on the Fed FOMC meeting June 15 & 16 2021
- China financial media say the PBOC might boost liquidity in the next two weeks
- New Zealand data: May food price index +0.4% m/m (previous +1.1%)
- CEO of Kraft Heinz says "inflation is here" (but ketchup shortage end is in sight)
- US Senator Manchin says further bipartisan infrastructure talks coming this week
- NZD traders note for the diary - RBNZ speaker may reference May policy statement
- UK - Australia free trade deal likely to be announced in London Tuesday 15 June 2021
- Another BTC ICYMI - Paul Tudor Jones likes bitcoin as a portfolio diversifier
- NZ house prices +1.5% m/m in May, +24.7% y/y
- A Bitcoin ICYMI - MicroStrategy to add circa US$500m to its holdings of BTC
- RBA June meeting minutes will be published today - but the July meeting is more of a focus
- Trade ideas thread - Tuesday 15 June 2021
Major forex rates traded in limited ranges during the session here with the market looking ahead to the weeks' major event, Wednesday's Federal Reserve Federal Open Market Committee meeting. For today there was, however, some interest in the Reserve Bank of Australia June meeting minutes. The June meeting was seen as something of a 'placeholder' ahead of the more important July meeting, when some indication of policy wind-back is expected, but the minutes were looked to for clues to July. There was not a lot in the minutes, however one notable part was anecdotal evidence cited by the RBA for firms using non-wage incentives to attract staff, and, if that failed, firms slowing output, instead of paying higher compensation to workers. If this is more than just anecdotal (the RBA cite 'liaison', i.e. talking with their contacts) then it presents a challenge for the Bank - policy makers are looking for wage pressure to help drive inflation higher towards their target. The Bank has said repeatedly it will hold policy easy until targets are met and have even indicated an overshoot in inflation, to some extent, is acceptable. Without wage pressure it cpould take longer to hit RBA target.
The Australian dollar dipped following the release of the minutes, losing around 15 pips or so to lows circa 0.7695. NZD/USD lost a few points alongside. Both have since retraced somewhat.
EUR/USD is a few tics higher, as is cable, USD/CAD and USD/JPY. The ranges for all of these have been small.
Bitcoin had another try at its US-time high of $41K and is circa $40.2 as I post.
AUD today:
