ForexLive Asia FX news wrap: Huawei under fire from US again

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday, May 16 2019    

Early news in the time zone came out of the US, with President Trump signing a national emergency order on telecommunications security. This had been pre-empted yesterday but his signature went on the line late Wednesday US time. Further news came out on restrictions on Huawei operating in the country. Tensions between the US and China thus continue to escalate with this latest development. We await now the Chinese response and further escalation.

Currency reaction was subdued, the 'risk barometer' AUD/JPY moved lower but not by much. Ranges were subdued. 

Forex news for Asia trading Thursday, May 16 2019    

The focus switched later to data from Australia, the monthly employment report. The data were mixed, with better employment growth, but in part-time, not full-time, off a huge full-time growth the previous month it should be said. Further muddying the picture was a move higher in the unemployment rate to 5.2%, with the previous month revised higher to 5.1%. The caveat here is that the participation rate jumped again also. Did I mention the picture was muddy? The report should be viewed in the context of leading indicators of employment softening. The RBA is closely watching developments in the labour market, and so, thus, should we. But the picture is not clear IMO.

Across the forex markets ranges were not large. Yen is a touch higher on the session. EUR/USD, cable, USD/CAD are all barely changed while AUD and NZD are both down a little.

Bitcoin cracked to a new recent high during the time zone here today. Gold is steady.

The PBOC slowed the pace of the fall in the onshore yuan, setting USD/CNY up circa 40 points after yesterday's much larger move.

Still to come:


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