Forex news for Asia trading Wednesday 2 September 2020
- The election for Japan's new Prime Minister will be on September 14
- Japan is considering free coronavirus vaccine for all citizens
- The key surprises in the Australian Q2 GDP plunge
- More from BOJ's Wakatabe
- AUD on its session low after worse than expected contraction in Q2 GDP
- BOJ Wakatabe - BOJ will take additional easing steps without hesitation if needed
- Australia Q2 2020 GDP -7.0% q/q (vs. expected -6.0%)
- RBNZ Gov Orr says not concerned on NZD exchange rate
- PBOC sets USD/ CNY reference rate for today at 6.8376 (vs. yesterday at 6.8498)
- 'Serious differences' between the two sides on US coronavirus economic relief
- Mexico says to 'defend preferential access' of agricultural exports to US
- FX option expiries for Wednesday 2 September at the 10am NY cut
- US issues advisory on North Korea's weapons programs
- More from RBNZ's Orr - future QE may include both domestic and foreign assets
- RBNZ Gov Orr says actively preparing a package of additional monetary policy tools
- Oil price to head higher says Goldman Sachs
- Technical analyst has higher prices targeted for gold
- Fauci says COVID-19 vaccine could be available earlier if clinical trials overwhelmingly positive
- Convalescent plasma is not proven to treat COVID-19, an NIH panel said Tuesday
- Bank model says USD/CAD is significantly undervalued
- UK data - BRC Shop Price Index (August) -1.6% y/y (prior -1.3%)
- New Zealand Terms of Trade for Q2 2020 +2.5% q/q (expected 0.6%)
- US vehicle sales (August) top 15m
- US dollar to continue falling
- Analyst says the US dollar is falling too far, too fast
- US Secretary of State Pompeo says expect an announcement in coming days or weeks on China
- M6.5 earthquake Chile offshore
- COVID-19 Antibodies last for at least four months after diagnosis, do not fade quickly
- RBNZ Governor Orr speaks later on the monetary policy response to Covid-19
- Trade ideas thread - Wednesday 2 September 2020
- US-UK trade talks (round 4) will commence on September 8
- Private oil stock survey data shows large draw in crude oil inventory
The gains for the USD evident in Tuesday Europe/US trade extended a little further here today nearly, but not quite, across the board. Of note was the good performance put in by the New Zealand dollar.
Data early in the session was supportive for the kiwi $, or should have been - there was not much response from the currency as terms of trade gained again, and handily beat expectations. RBNZ Governor Orr then gave a speech, seeing the kiwi chop around in a 20-odd point range. His final comments in the Q&A were that he was not concerned with the level of the NZD which the market took as a green light to take it to a fresh session high above 0.6780. NZD/USD has been held back some by the USD strength but it is a winner on the session.
Australian data today confirmed a steep plunge for the economy into contraction again in Q2, down 7% q/q as shutdowns bit. The -7% was worse than the median consensus estimate (-6%) and saw AUD/USD drop to a fresh session low under 0.7340 at one stage.
EUR, JPY, CHF, CAD, GBP are all just a just weaker against the USD but ranges are small.
