ForexLive Asia FX news wrap: China believes US insincere in trade talks
Forex news for Asia trading Friday, May 17 2019
- Xinhua says China may have little interest in trade talks with US right now
- Bitcoin dropping away, back towards 7000USD
- Australian press: 'Things are looking quite bearish': Australian dollar tipped to drop to mid-60s
- China onshore yuan weakens again today. USD/CNY above 6.9
- China's state planner says need to roll out stimulus measures
- Australian election this weekend - latest poll shows how close it is
- Poll shows most analysts expect the next BOJ rate move to be a hike
- More on US-Turkey: US cuts Turkish steel tariffs by half
- JP Morgan on the AUD, the Australian election, and the RBA
- ICYMI - US terminates Turkey's preferential trade treatment
- PBOC sets USD/ CNY reference rate for today at 6.8859 (vs. yesterday at 6.8688)
- Forex options expiring Friday 17 May 2019
- National Australia Bank now expect earlier rate cuts from the RBA. June then August.
- Singapore exports data - NODX drops 0.6% m/m in April
- Japan fin min Aso says easing monetary policy would help the economy
- The UK Treasury's FX "war chest" to defend GBP in run-up to Brexit
- China’s retail traders … FX brokers appear to be exploiting regulatory loopholes
- Japan says they are staying out of the US-China trade war - won't offer any solutions
- Oil - This weekend the OPEC monitoring committee will meet
- NZD expected to remain resilient - here are 4 reasons why (and NZD forecast)
- New Zealand Q1 PPI output -0.5% (prior 0.7%) & PPI input: -0.9% (prior 1.6%)
- New Zealand - BusinessNZ Manufacturing PMI for April: 53.0 (prior 51.9)
- Deutsche Bank on the EUR/USD - see it potentially even lower
- Moody's on France: high tax, regulatory burden, inability to reverse rising public debt trend
- Morgan Stanley on the RBA … June is too soon for a rate cut from the Bank
- Before the next RBA meeting here are two events to watch for clues
- ICYMI - Long-time RBA watcher McCrann says the Bank will cut on June 4.
- Trade ideas thread - Friday 17 May 2019
We didn't get too much impactful news nor data today and forex reflected this in tight ranges.
Until, that is, news filtered out that Chinese state media carried reports saying China was not much interested in talks with US on trade for now. China says the recent approach from the US has lacked sincerity and that the moves against Huawei in past days are 'tricks'.
In past minutes USD/JPY has dropped towards 109.70 after being briefly above 110 earlier in the session. USD/CNY has been a mover today also, above 6.9 for the first time since December last year. While the PBOC is concerned that a weakening yuan will prompt capital outflow they are not doing much right now to halt the slide. 7 is perhaps a line in the sand but that is yet to come.
GBP is down a few points on the session, EUR is barely changed. NZD and AUD, too, are not too far away from late US levels. Australia heads into a Federal election this weekend (ICYMI) - polls are very tight but have the opposition slightly ahead.
Moves today for the Turkish Lira, with the US taking away Turkey's preferred trade status. On the other hand steel tariffs on the country have been dropped back to where they were last year before President Trump doubled them. TRY is net weaker on the session.
Bitcoin too has been a mover, it plunged nearly a 1000USD to under 7000. The only news I have seen on it is the closure of a New Zealand 'exchange', but that's was a couple of days ago so its hardly breaking.