Forex news for Asia trading on Friday 17th September 2021
- Next week brings the Fed's Federal Open Market Committee meeting - USD implication
- RBA says Australian coal exports could decline significantly by 2050
- Iron ore is on the rocks again in China today. UBS lowers its price projections.
- Fitch has downgraded China-based homebuilder Fantasia
- North Korea expanding facility used to produce weapons-grade uranium
- PBOC sets USD/ CNY mid-point today at 6.4527 (vs. estimate at 6.4501)
- Australian state NSW moves towards welcoming back international travel
- Singapore August NODX +2.7% y/y (vs. expectations of +8.3%)
- Singapore equity market news - package of programs includes $1.1bn investment fund
- Analyst expectations are converging on a November Fed taper announcement
- Biden, Pelosi and Schumer all agree Trump tax cuts must be repealed
- US President Biden looks to get the USA back into the Pacific trade pact
- Worries that Canada's federal election on Monday could result in a deadlock
- Here's the gaffe from ECB's Lane that triggered the rate hike story
- In a bid to keep people & the economy healthy US now publishing coronavirus cases by vaccination status
- New Zealand - BusinessNZ manufacturing PMI for August 40.1 (prior 62%)
- Reports on ECB rate hikes in UK media are wrong says the ECB
- Dutch PM Rutte reportedly invites the UK to join the EU (in a defence deal)
- ICYMI - Italy to suspend employees without pay until they get vaccinated
- World Bank leaders found to be favouring China ... "Doing Business"
- Even Russia's central bank head says inflation is transitory (hopes 7% will be the top!)
- Just under 30% of gulf crude remains offline after hurricanes Ida and Nicholas
- Trade ideas thread - Friday 17 September 2021
USD/JPY has ticked a little higher here on the session, towards 109.90 and the big round number at 110 (... again!). There was no impactful news flow nor data. A flow out of safe-haven refuge is usually the obvious narrative for a bout of yen weakness but that doesn't really cut it today. EUR, AUD, NZD, GBP, CAD ... all are basically flat.
It was a busy session for developments in China though, still falling are:
- Evergrande fixed interest issues
- Evergrande equities
- iron ore
- home-builder Fantasia (downgraded ... contagion from Evergrande woes?)
On the other hand the yuan is on a rip. As measured against its trade-weighted basket the yuan hit its highest since 9 March 2016 (TWI via China's China Foreign Exchange Trade System (CFETS)). Against the USD the CNY was ramped up 197 points today at the daily onshore (CNY) setting, to its strongest since August 9. Meanwhile, the People's Bank of China injected 90bn yuan (net) for the day (and for the week) in a move it says is to keep liquidity stable towards quarter-end. Coming up next week is the National holiday and after that the longer holiday, October 1-7, for Golden Week. Liquidity provision for these is also a factor in today's injection (as a not-so-side note 50bn of the cash input was done via a 14-day reverse repo open market operation, the first time the 14-dayer has been used since February this year).
USD/JPY on approach to the big round number of 110 ... for the umpteenth time...
