Forex news for Asia trading Thursday 2 July 2020
- Its US NFP day (a day early due to holiday Friday) - nonfarm payroll preview
- Australian PM Morrison says considering making Australia a safe haven for Hong Kong
- JP Morgan with 3 reasons the US S&P is going higher
- Australia trade balance for May: AUD +8.025 bn (expected AUD +9bn)
- PBOC sets USD/ CNY reference rate for today at 7.0566 (vs. yesterday at 7.0710)
- FX option expiries for Thursday July 02 at the 10am NY cut
- Australia - coronavirus cases rise again, +77 in state of Victoria
- US coronavirus cases up more than 48,000 the past day
- USD overvalued, no reason to rise - to come down on approach to US election
- ICYMI: Japanese University says its isolated a silkworm protein which could be coronavirus vaccine
- Bank of America indicator says stocks to go higher , +11% in the next 12 months
- Trump says he likes masks - on wearing one: “It looked like the Lone Ranger”
- Goldman Sachs expect the oil price to continue higher into 2021
- Australia cash hoarding continues, accelerates
- US coronavirus - Florida's Miami-Dade makes masks mandatory, inside and outside, in all public places
- China has imposed new media restrictions on the US
- The UK is offering 3 million Hong Kong people a path to citizenship
- US coronavirus - Reports that McDonald's is pausing its US reopening plans
- The US House has passed the $1.5tln infrastructure bill - Trump has threatened to veto it
- Australian Treasurer Frydenberg says says no plans to increase GST
- NZD/USD seen ending 2020 little higher than present levels
- US coronavirus - Texas cases on the day more than 8,000, deaths highest in 6 weeks
- Trade ideas thread - Thursday 2 July 2020
- ICYMI - S&P cut its UK 2020 forecasts again: 8.1% contraction, “perfect storm” warning
- EU in talks with Gilead to obtain COVID-19 antiviral remdesivir for the 27 European Union countries
The session began with some small losses for the USD, emphasis on small, with AUD, NZD, GBP and even EUR up just a little. CAD was a laggard, well it was a loser, falling some against the USD. Yen lost against the dollar also.
Data flow was non-impactful, and there was not a lot of it. Australian exports and imports were both lower on the month (May was reported today) but the trade balance remains elevated as imports have weakened more than exports since the global outbreak.
AUD dropped away, losing its gains (I've already mentioned they were small only) as the Prime Minister floated the idea of making the country a 'safe haven' for Hong Kongers in the wake of China's new security law. The other currencies I mentioned above as having gained against the dollar gave back a few points alongside but AUD was the biggest.
The news on the spread of coronavirus in the US worsened again, Bloomberg report a surge of move than 50,000 cases in the preceding 24 hours while other sources came in just slightly under this figure. Goldman Sachs note that more than half of the US has now, or is in the process of, dialling back the reopening moves. You'll note in the bullets above the case count jump in Australia also, small potatoes compared to the US but not a positive for reopening in Australia nonetheless.
NZD:
