Forex news for Asia trading Friday 16 August 2019
- Slightly better risk sentiment helping AUD in Asia Friday
- JP Morgan on the BOJ and below target JGB yields - something's gotta give
- Another updated call for further RBNZ rate cuts ahead
- China state planner says to boost people's disposable incomes
- Mexico central bank gov says MXN could see new volatility
- Citi on the potential for Trump to intervene in the USD, where to for EUR and yen
- China state media again on HK - only way to resolve is to return to rule of law
- PBOC sets USD/ CNY central rate at 7.0312 (vs. yesterday at 7.0268)
- BOJ reduces its purchases of 5 -10 year JGBs for the first time since December of 2018
- Singapore data: exports +3.7% m/m in July (expected +2.7%)
- Expected ranges for major currencies next week - here is some background preparation
- Japan - 10 year JGB yield falls to its lowest since 2016
- US President Trump says China wants to make a deal, Iran wants to make a deal
- More North Korean tests - two missiles fired off east coast
- RBNZ says recent rate cuts will lead to higher inflation, GDP growth, support employment
- Here is the article that prompted the terse comeback from RBNZ Governor Orr
- Here's a little more on the dovish comments earlier from the Minneapolis Fed's Kashkari
- New Zealand BusinessNZ Manufacturing PMI for July: 48.2 (prior 51.3)
- RBNZ Gov Orr says global and domestic low inflation expectations key reason for lower official interest rates
- US President Trump has asked advisers whether the U.S. can acquire Greenland
- US President Trump says China is doing poorly, wants to make a deal
- Goldman Sachs Federal Reserve outlook and what to watch for in the US dollar
- Trade ideas thread - Friday 16 August 2019
AUD and NZD were movers here today. Neither is too much changed on the session but relative to others the two have been where the action was.
For the Kiwi there was plenty of news and data flow, from the manufacturing PMI slipping into contraction for the first time since 2012 to comments from the RBNZ Governor defending the Bank's independence and later a piece from the RBNZ saying interest rate cuts are still effective. UBS followed later still by adding in another expected rate cut to their RBNZ outlook (see bullets above for more on all of these).
NZD/USD dropped to lows circa 0.6430 before recovering to be only little net changed on the session above 0.6440 as I update.
For the Australian dollar, it benefitted from some flows out of kiwi and into Oz. No data nor idiosyncratic news for it. As I update it has traded to fresh highs since yesterday's positive employment report but 0.68 has proven still too far away.
Elsewhere there is very little net change on the session after only small ranges. Of the others USD/CHF is likely the most notable, tis tip-toed steadily higher for the session, adding around 25 points.
EUR/USD is looking heavy again around 1.1100 as I update.
Gold managed a small break of its overnight high but could not sustain, its back around 1520.
Still to come:
