ForexLive Asia FX news wrap: US stock index futures turn up, currencies ditto
Forex news for Asia trading Wednesday 16 September 2020
- JPM on USD/CHF - level to sell & target
- China's state planner says 88.2bn yuan of projects approved in August
- China's Global Times take on why the yuan is surging against the US dollar
- US blacklists another Chinese firm over military work
- Westpac on what the RBA is waiting for in October
- PBOC sets USD/ CNY reference rate for today at 6.7825 (vs. yesterday at 6.8222)
- FX option expiries for Wednesday September 16 at the 10am NY cut
- NZ pre-election outlook update - lowers peak unemployment rate forecast
- USD outlook (skewed negative) over the Federal Open Market Committee meeting today
- Australia - Westpac leading index for August: +0.48% m/m (prior +0.05%)
- USD: Yen adding on a few points, other currencies weaken
- Here's a preview of a policy change coming from the FOMC today
- Japan data - trade balance for August: Y 248.3bn (expected Y -15.0bn)
- Reports that the US FTC is preparing a possible antitrust case against Facebook
- COVID-19 vaccine update ICYMI - US' Novavax doubles its manufacturing capability
- Canada - US travel restrictions renewed for another month.
- US coronavirus - Texas biggest daily jump in infections in nearly 3 weeks
- New Zealand data - BoP Current Account for Q2: 1.828bn (expected 0.69bn NZD)
- Bank of America fund manager survey indicates that "Long US tech" is the most crowded trade ever
- US DOJ says it will announce charges, arrests in relation to hacking linked to China.
- U.S. to remove tariffs on Canadian aluminium - recap
- JPMorgan quant says Nasdaq 100 selling correction has likely run its course
- White House Meadows says latest fiscal stimulus proposal does not align with Trump's priorities
- Welcome to Federal Open Market Committee day - FOMC preview
- Trade ideas thread - Wednesday 16 September 2020
- Oil - Private oil inventory survey data shows a draw (build was expected)
Correlation between US stocks and currencies again in Aisa today. 'Overnight' US stock index futures trade was down a little before turning around and that's the pattern for most currencies against the USD here also. On the news front it was more negative news for Facebook again, The US Federal Trade Commission is reportedly preparing a possible antitrust lawsuit against Facebook, which closely follows on the heels of Kim Kardashian kicking it to the kerb on Tuesday in the US. That was a bit of bad news for US stocks but as already pointed out as I post that's been reversed.
EUR, AUD, NZD, GBP, CHF all lost a little ground early and have al;l since reciovered, AUD and NZD adding on the best gains of the lot (NZ saw some extra benefit from a less dour NZ Treasury report), but CAD is doing OK also. EUR and GBP are both lagging the moves just a little.
USD/JPY has had a weak session pretty much throughout, though, despite the 'risk' recovery evident in the RORO complex outlined above yen has steadily ticked higher. This is something worth keeping an eye on if it develops further.
The PBOC ramped the onshore nearly 400 points stronger at the mid rate setting today.Even gold caught a mild bid: