Forex news for Asia trading Monday May 20 2019
- Offshore-listed Chinese companies to sell the yuan, buy foreign currencies from June to August
- Weekend - Canada will move quickly to ratify the new North American trade pact
- Weekend - China's top diplomat told Mike Pompeo to chill out on Iran, trade
- Anti-money laundering specialists at Deutsche Bank wanted to report Trump transactions
- Japan Q1 GDP data - recap
- Former PBOC official says China should not allow yuan weaker than 7
- Trump speaking on Fox - says he won't let Iran have nuclear weapons
- PBOC sets USD/ CNY reference rate for today at 6.8988 (vs. yesterday at 6.8859)
- Euro to benefit if risk for China assets increases ?
- US Trade Rep Lighthizer to meet Japan economy minister for talks on May 24
- Japan's economy minister gets to crow about something! Fundamentals solid.
- Japan GDP (preliminary) Q1 2019: 0.5% q/q (vs. expected -0.1%)
- South Korean fin min says monitoring financial markets, will respond in case of herd behaviour
- BlackRock on politics posing the biggest risk (and no, not for AUD … lookin' at you Europe)
- Australian election analysts says Australian govmt to get a majority
- UK Rightmove house prices for May: +0.9% m/m (prior +1.1%)
- NZ Services PMI for April falls to 51.8 (prior 52.3)
- Deutsche Bank on the AUD - offers value against CAD and NZD
- German fin min monthly report - says external risk for the economy remains high
- Weekend bitcoin update
- Google suspends some business with Huawei after Trump blacklist
- Meanwhile, the Irish Deputy PM has been reminding Brexit land of reality
- UK press: Theresa May’s final Brexit deal - nothing more than a “retread” of old ideas
- Trade ideas thread - Monday 20 May 2019
- Trump tweet: If Iran wants to fight, that will be the official end of Iran.
- Weekend China press hints at currency intervention
- Weekend - ECB's Knot says euro zone inflation not where ECB wants it
- DJ on OPEC - closer to continuing existing production targets through end 2019
- Saudi Energy Minister says there is consensus to drive down inventories
- Oman's oil minister says its possible Iran may leave OPEC
- Monday 20 May 2019 early FX price guide, update on the AUD pop
- Riksbank dep gov says can meet inflation target also with a stronger SEK
- Good morning Monday 20 May 2019 ! Early FX price guide - AUD pop
- AUD traders - Australian election decided, incumbent government wins
- Bitcoin tumble yesterday (and rebound) gives buyers and sellers some cause for pause
The Australian election was held on Saturday with the incumbent government returned. The polls leading up to the election had the opposition in front but the margin was always within a bee's you-know-what distance. And besides, we've all learnt to be sceptical of polls in elections in recent years. The Australian dollar popped above 0.69 in very early trade (check out the 'early indications' post above for levels). It retraced some of its 'gap', down towards 0.6890 but has since steadied above 0.6910. NZD caught some support from the AUD also.
USD/JPY has ticked up a little on the session also, with some buying for EUR, CAD and GBP alongside as a little risk came in favour. For the EUR this has ebbed, though, its back around 1.1155. Having said all this its range has been small. Cable has stayed a few points to the better, though, as has CAD. USD/JPY remains just below session highs circa 110.20.
Japanese GDP data was the big one today, for Q1 2019. The headline was a big, big beat, the details were a bit of a horror show though. Exports fell, but imports collapsed, leaving trade a net positive contributor but for all the wrong reasons. Consumer spending, down, business capex, down .... while the positives came from inventories and government spending.
The yuan was set a little weaker again today.
Iron ore has continued its climb, hitting highs not seen since May 2014 (in USD). The Australian dollar has not been responding to gains in price for iron ore, the correlation does come and go. Oil traded a touch higher on the session here following the weekend OPEC JMMC meeting. While any decisions on what to do oil production levels have been left to the full June meeting (as was always a likely outcome, that's not what JMMC is for) there was little indication OPEC+ will open the taps further any time soon.
Still to come:
