Forex news for Asia trading Friday 15 May 2020
- China officials say daily electricity generation up 1.17% y/y in April, consumption +2%
- Reports that JCPenney is planning to file for Chapter 11 bankruptcy protection as early as tomorrow
- China April Industrial production 3.9% y/y & Retail sales -7.5% y/y
- The poor state of the jobs market that's translating to a boost for gold
- PBOC MLF operation: 100bn yuan lent for 1 year at 2.95%
- Citi's US stock market indicator warning sign - 'euphoria'
- PBOC sets USD/ CNY reference rate for today at 7.0936 (vs. yesterday at 7.0948)
- FX option expiries for Friday May 15 at the 10am NY cut
- White House preparing executive order requiring certain essential drugs be made in US
- 4 reasons to turn bearish US stocks (and one positive)
- US FDA alerts on early data suggesting potential inaccurate coronavirus test
- Japan data: PPI -1.5% m/m (vs. expected -0.8%)
- CNBC reporting the White House is likely to support more stimulus checks
- Taiwan to build an advanced chip factory in Arizona
- JP Morgan on the support level to watch in AUD/USD
- New Zealand - BusinessNZ manufacturing PMI for April 26.1
- More from Fed's Kaplan - comments on coronavirus safety precautions
- US Senate leader McConnell says not ruling out another fiscal package
- Fed's Kaplan says need more fiscal stimulus
- New Zealand house prices +2.1% m/m in April
- Q: How long before Fed Chair Powell caves in and sends rates negative? A: Q1 2021
- Two weeks after Texas reopening coronavirus virus cases increase by most ever
- Overnight news - Delta plans to retire all its 777 Boeing jets, replace them with Airbus aircraft
- US Treas Sec Mnuchin: Trump is reviewing all his options on China
- Trade ideas thread - Friday 15 May 2020
- NYSE to partially reopen its trading floor on May 26
- US CDC has issued official guidelines on steps to opening schools, transit, restaurants, workplaces
- Six US Navy warships have sailed through the Taiwan Strait this week (so far)
- Further US-China tensions as Senate supports sanction on Chinese officials
- White House threatens to veto the Democrats stimulus bill
Currencies were fairly through the session here following their rise during the US afternoon. There was one final small pop above the US high for EUR, GBP, AUD, NZD against the USD (USD/CAD vice versa dip) but this was soon reversed and all of these are on their session lows as I post, in limited ranges.
News flow was light only and, as you can see, of not much impact. On the data front the focus was on activity data from China for April. Industrial production for the month and YTD showed a handy beat of expectations, confirming the (albeit slow) recovery of supply we have been seeing. The demand side though is not so rosy. Retail sales for the month were another poor result and a miss on the central median estimate. Concerns over future economic conditions and employment are weighing on consumers in China, and elsewhere of course leading to more savings and less spending. Deflation seems entrenched for the months ahead.
Also from China today, the People's Bank of China conducted a one-year injection of funds via a 12-month MLF. 100nn yuan fell short of the 200bn yuan that matured in MLF on Thursday (see bullets above).
Japan lifted its coronavirus state of emergency in 39 prefectures, easing back on restrictions.
China retail sales: