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).
![Forex news for Asia trading onWednesday2June 2021](https://az705044.vo.msecnd.net/20210602/usdtry-wrap-02-june-2021.png)
Still to come out of Australia and the RBA: