Forex news for Asia trading Friday 18 September 2020
- China has 11 coronavirus vaccine candidates in clinical trials
- China says it will conduct legitimate military exercises in the Taiwan Strait
- Goldman Sachs on oil - market deficit of 3m b/d likely in Q4, Brent forecast remains $49
- Longer term AUD/JPY levels to watch
- Upgraded forecasts for the Chinese RMB due to supportive fundamentals, flow picture
- PBOC sets USD/ CNY reference rate for today at 6.7591 (vs. yesterday at 6.7675)
- FX option expiries for Friday September 18 at the 10am NY cut
- China says they have found coronavirus in the packaging of Indonesian frozen fish
- OK, so 'Suganomics' is now a thing. Analyst says it means lower USD/JPY for longer.
- Asia opposite day as the USD extends its overnight losses early
- Japan CPI data for August, headline inflation 0.2% y/y as expected
- RBNZ monetary policy meeting preview (unchanged expected)
- HK press on what a Biden presidency would mean for the US-China tech war
- NZ finmin Robertson says the RBNZ is committed to 0.25% until March 2021
- Recap of the BoE monetary policy decision - what surprised markets
- Goldman Sachs on the timing of the next Federal Reserve rate hike - (spoiler ... 2025)
- HK central bank increasing its intervention efforts
- Coronavirus - UK scientific advisers to government are recommending a second national lockdown
- China state media warn will use non-peaceful means to solve the Taiwan question once and for all
- Trade ideas thread - Friday 18 September 2020
- Fed considers extending rules on limiting dividend payments and buybacks for banks
- Bank of England monetary policy meeting - recap (negative rates on the way but not yet)
There was little of impact during the session here today, both news and data flow failed to generate much interest. An early Asia move for the USD saw currencies pop just a little higher, extending their Thursday Europe/US bounce back move. EUR/USD got just over 1.1860, cable approached 1.2990 and AUD/USD popped over 0.7330. CAD, NZD, CHF all gained a little also.
Since then rates have retraced, but GBP has turned in the biggest loss out of the lot, its nudging its session low as I post, just over 1.2940. There was nothing on the Brexit front but we did get news from the FT that the government is being urged by its science advisers to place the country into another nationwide lockdown. You'll recall PM Johnson said as recently as Wednesday (last time I heard, he may have repeated it since) that he is opposed to doing so.
USD/JPY has been quietly ticking a little higher (emphasis on little), straddling 104.85 as I update.
The People's Bank of China did not relent again today, strengthening the onshore yuan further (see bullets above). Gold, too, added a few dollars on.
