Forex news for Asia trading Tuesday 18 August 2020
- Coronavirus - China closes in on a vaccine, says it'll use access to it strategically
- FT report that Oracle has now joined in the bidding for TikTok's US operations
- AUD/USD resistance ahead noted just above 0.7240
- RBA minutes show the Board sees no need to adjust policy right now - will do if necessary
- USD weakness extending further in Asia (not quite across the board)
- China has begun an anti-dumping probe into Australian wine
- NZ new confirmed coronavirus cases today 13 (some Australia COVID-19 news also)
- PBOC sets USD/ CNY reference rate for today at 6.9325 (vs. yesterday at 6.9362)
- FX option expiries for Tuesday August 18 at the 10am NY cut
- ANZ forecast an RBNZ negative cash rate from April 2021
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- Citi on gold , raise their targets
- M6.9 earthquake - Philippines
- Trump says he will be signing a pardon for a 'major figure' on Tuesday
- CAD - Canada's fin min Morneau has resigned
- Australian weekly consumer sentiment: 88.6 (vs. prior 86.5)
- Japan - Reuters Tankan (August) - manufacturing sentiment improved, still woeful
- Australia (state of Victoria) report 222 new coronavirus cases
- North Korea says it will convene a high level meeting on Wednesday - matter of 'crucial significance'
- Coronavirus - (Australia) City of Sydney added to list of COVID-19 hotspots
- OPEC+ JMMC meeting this week - preview
- More to come for the AUD rally? Fresh highs "remain within reach".
- Apparently the rally in bitcoin is "different this time"
- Trade ideas thread - Tuesday 18 August 2020
The USD weakness seen during Europe/UK/US hours continued somewhat here in Asia today but it was not across the board.
USD/JPY dropped in a steady manner from early Tokyo time, the news out of North Korea of a major announcement related to 'fighting efficiency' to come on Wednesday fed through a little into yen strength, although general USD weakness also played a role. EUR/JPY is lower, so there is some idiosyncratic yen strength in play.
EUR/USD moved above 1.1890 but has not managed so far to pierce 1.1900. The round number will see further defence, but persistent US dollar weakness suggests its only a matter of time, especially when UK/Europe volume comes into play. Cable gained also.
USD/CAD had an eventful session, late US time saw it add on points:
- and then came the announcement of a press conference called by Canadian finance minister Morneau,
- then the rumour he'd be resigning,
- then confirmation that indeed he had resigned, not only his ministerial position but he will not stand for re-election to the parliament at the next federal election.
The announcement topped USD/CAD on the session circa 1.3230 and its spent the hours since dropping back to its recent lows circa 1.3190.
NZD/USD
had a surge above 0.6550 in the US afternoon (AUD/NZD buyers sellers cited)
to highs just over 0.6570. It retraced the move, the edged up to get back towards 0.6565 and since has fallen back to below 0.6540 now.
The latest downswing coincided with ANZ issuing a revised call for
the RBNZ to implement negative rates, albeit not until April next
year.
As I update the AUD has proven a bit of a laggard also. After highs to 0.7230 it has dribbled back to barely changed on the session around 0.7215. China has announced an anti-dumping probe into Australian wine exports. Which is probably related to current strains between the two countries.
Gold approached, but has not reached, $2,000.
EUR:
