Forex news for Asia trading for Wednesday 2 December 2020
- Softbank will dial back its option trading 'after investor backlash'
- NZD/USD forecast to remain above the top of its fair value range through 2021
- Federal Reserve Chair Powell speaks again Wednesday - content the same as previous speech
- RBNZ Gov Orr will speak later - he could give the NZD a boost. Live link.
- Australian Treasurer Frydenberg: Q3 GDP a step forward in economic recovery
- BOJ dep gov Amamiya says will not hesitate to add easing if necessary
- PBOC sets USD/ CNY reference rate for today at 6.5611 (vs. yesterday at 6.5921)
- FX option expiries for Wednesday December 02 at the 10am NY cut
- 35% of analysts polled by Reuters expect a no UK-EU trade deal Brexit
- RBA's Lowe says he is not concerned about a rating downgrade
- Australia GDP for Q3 3.3% q/q (vs. expected +2.5%)
- US coronavirus - First shipments of Pfizer vaccine to be delivered on December 15
- UK Premier League clubs will need to get a work permit for players from EU countries
- RBA's Lowe says the Bank will own 20% of government debt by the end of the bond-buying program
- UK data - BRC Shop Price Index for November: -1.8% y/y (expected -1.3%)
- RBA's Lowe says has an open mind on extending QE
- The US justice dept is investigating a White House bribes for pardons allegation
- US coronavirus - CDC recommending cutting quarantine time by as much as half
- AUD/USD a few tics higher, RBA Governor Lowe testimony suspended
- RBA's Lowe says the Australian economy has turned a corner
- US CDC recommends health-care workers, nursing homes get COVID-19 vaccines first
- Oil - the likelihood is that OPEC+ will agree to a short extension, but risk of no deal is high
- FT: Janet Yellen calls for action to prevent US economic ‘devastation’
- Trade ideas thread - Wednesday 2 December 2020
- New Zealand terms of trade for Q3 -4.7% q/q (expected -3.8%)
- UK is readying distribution of COVID-19 vaccine by the weekend
- Moderna has filed its COVID-19 vaccine application for EU authorisation
- Private oil survey data shows surprise build in crude oil inventory
- EU states want to see Brexit deal before it is closed - worried Barnier will concede too much
While forex ranges in Asia during the session here today were not large, yen crosses were notable movers. USD/JPY moved towards (but not to) 104.50 from an early low under 104.25 (briefly) while other major FX gained at least a few points pretty much across the board against the USD.
Impactful news flow was light indeed, but on the data front we got Q3 Australian GDP showing a beat on expectations. AUD/USD has net gained only ten points or so on the session (GDP data is always 'old' news).
While in Australia, Reserve Bank of Australia Governor Lowe spoke today, appearing before a parliamentary committee. Lowe stuck to familiar ground, after the substantial policy moves in November it is too soon to expect him to be flagging any new initiatives. Lowe was, as he most usually is, net upbeat (even if a little tempered by a poor employment outlook). NZD/USD is slightly higher on the session also.
EUR/USD is also slightly up, while cable is more or less flat on the day, as is USD/CAD.
As a heads up, ECB Chief Economist Philip Lane may be speaking today, at 1400GMT. May be. Do stay tuned though as it was Lane who jawboned the EUR lower in the early part of September.
And, one more thing, though its not strictly FX; as this goes to post Trump has threatened to veto a circa trillion USD bill that funds the military and Pentagon unless Congress repeals legal protections for Silicon Valley. This is a substantial escalation of a White House war on big tech and has serious national security implications. I don't know if the concern may seep into markets, but a heads up.