Forex news for Asia trading on Wednesday 2 June 2021
- Coronavirus - Australia's second-largest city Melbourne gets a 7-day extension of lockdown restrictions
- Japan economy minister Nishimura says beginning process to get the UK into the TPP
- BOJ policy board member Adachi says Japan's economy is improving as a trend
- Australia GDP for Q1 2021 +1.8% q/q ( vs. expected +1.5%)
- RBNZ Gov Orr says dairy exports supportive for NZ economy, helping offset tourism losses
- PBOC sets USD/ CNY mid-point today at 6.3773 (vs. yesterday at 6.3572)
- China's Vice President Liu He and US Treas Sec Yellen spoke - video conference
- Fitch has raised their NZD forecasts citing effective containment of Covid-19, robust policy support, RBNZ
- US meat company hit by cyberattack expect most plants to be back producing on Wednesday
- Australian markets undisturbed despite "explicit taper talk from Lowe" (RBA Governor)
- RBA official speech - optimistic scenario with surprising strength of economic recovery so far
- South Korean May Core CPI 1.2% y/y, fastest since 2018
- UK data - BRC Shop Price Index for May: -0.6% y/y (prior -1.3%)
- RBNZ's Head of Financial Markets says the Bank's balance sheet will remain large for a long time
- New Zealand Terms of Trade for Q1 2021: +0.1% q/q (vs. expected -0.3%, prior +1.3%)
- US beef cyberattack - all JBS plants in the US now shut
- US regulators say Tesla failed to oversee Musks' tweets (DOGE higher)
- Turkish lira slammed after Erdogan rate cut threat
- Turkey President Ergodan calls for lower interest rates, spoke with central bank governor
- Australian January - March economic growth data (Q1 GDP) is due 2 June 2021 - preview
- Trade ideas thread - Wednesday 2 June 2021
USD/JPY has inched higher during the session, up towards 109.65. We had a BOJ speaker, a dovish speech (they usually are) which helped but the yen was softer well before. EUR, AUD, NZD, CAD, GBP are all a little higher against the dollar and thus the yen also.
AUD/USD had an attempt at 0.7770 again early in the session, and managed to pierce it (ever so briefly, high circa 0.7773) following the release of a beat for Q1 GDP data. As I update AUD/USD is tracking in a small range just under 0.7770. Australia's second-most populous city (Melbourne) has had lockdown restrictions extended for another 7 days on top of the original 7 days (to June 10) while the surrounding regional areas in the rest of the state have had an easing back of restrictions. While Q1 GDP was a beat Q2 may be more challenging if this lockdown extends further again, this time around there is no federal government wage/job support - that measure has expired.
Comments from Japan economy minister Nishimura today indicated he is beginning the process of getting the UK to join as a member of the TPP (Pacific free trade agreement) - some good news for the UK and trade.
The People's Bank of China set the CNY a little weaker today for the first time in 4 days.
The Turkisk lira collapsed to a record low against the USD after President Ergodan urged the central bank to cut interest rates, saying that would help reduce inflation (yes, really).
Still to come out of Australia and the RBA: