ForexLive Asia FX news wrap: OPEC+ reaches an agreement, supply increases from August
Forex news for Asia trading on Monday 19 July 2021
- China is helping restrain global inflation as firms absorb higher input costs
- China's state planner says it approved 40 fixed-asset investment projects in H1 2021
- RBC say the OPEC+ agreement is a positive - the cartel is not headed for fracture
- Coronavirus lockdown to be extended for Australia's second-most populous state
- Credit Suisse raise their oil price forecasts
- PBOC sets USD/ CNY reference rate for today at 6.4700 (vs. yesterday at 6.4705)
- Risk trades not having a good opening to the week - USD higher, equities lower
- MUFG say this week's ECB meeting could be a market mover for EUR, lower
- Goldman Sachs says the weekend's OPEC+ agreement is supportive for oil prices
- RBNZ rate hikes ahead appear locked in, now the question is when and how many?
- UK July Rightmove house prices +0.7% m/m vs +0.8% prior
- How six countries are faring after easing covid-19 rules
- Coronavirus - CBA says Sydney and Melbourne's lockdowns are set to sharply impact the Australian economy
- New Zealand services PMI for June 58.6 (prior 56.1)
- National Australia Bank CEO says rising number of customers facing financial stress
- The test-and-trace 'pingdemic' threatening UK business
- WSJ opinion piece says the RBA is likely to put its QE taper on hold due to Sydney lockdown set to extend
- Westpac on the game-changer ahead for Australia, issues new AUD/USD forecasts
- Trade ideas thread - Monday 19 July 2021
- Oil - Russia's Novak says the country will return to pre-COVID output in May 2022
- Monday morning open levels - indicative forex prices - 19 July 2021
- OPEC+ agrees to deal that will see 400k bpd added monthly
- Oil - OPEC+ ministers to meet on Sunday 18 July 2021 to discuss crude output policy
The major news item of the day, from the weekend, was the calling of a snap OPEC+ meeting given last week's agreement between Saudi Arabia and the United Arab Emirates which patched up the rift blocking the OPEC+ deal. The meeting took place (virtually) on Sunday (Vienna time) and the deal was reached in no time, the details:
Oil markets opened soon thereafter and prices have dripped lower during opening trade. USD/CAD is higher.
Across the forex space it was a day of lower for many currencies against the USD, but not in large ranges. AUD/USD and NZD/USD continued to slip a little lower as the coronavirus lockdowns tightened and are set to extend in Australia's two largest of Sydney and Melbourne.
EUR and GBP lost a little ground against the USD while USD/JPY lost a few points also.