Forex news for Asia trading for Tuesday 20 October 2020
- As AUD falls away, Goldman Sachs on two things to watch out for an AUD rally
- UBS on 3 reasons to like US equities
- Brexit - Reuters poll shows 40% chance of no UK_EU trade deal
- China September new home prices +0.34% m/m (prior +0.56%)
- China Loan Prime Rate monthly setting: 1 year 3.85%, 5 year 4.65%. Both unchanged and as expected
- PBOC sets USD/ CNY reference rate for today at 6.6930 (vs. yesterday at 6.7010)
- FX option expiries for Tuesday October 20 at the 10am NY cut
- S&P affirms Australia 'AAA/A-1+' ratings, Outlook negative
- RBA October meeting minutes - board to place more emphasis on actual inflation, not forecast inflation
- For the oil folks - Pioneer is in talks to buy shale rival Parsley
- Oil - OPEC+ JMMC meeting produced no word on delaying further output cuts
- More from RBA Kent - monetary policy board focused on traction of further easing
- US election debate on Thursday - microphones will be able to be muted
- AUD lower as RBA Kent speaks - reiterating scope for further policy easing
- More from RBA's Kent - says monetary policy board is considering the case for further easing
- China Securities Journal says that the PBOC may increase its reverse repo operations
- RBA Kent says there is a need for policy support for some time to come
- More from RBNZ Gov Orr - will update on policy tools in November
- Australia weekly consumer confidence 98.1 (prior 97.7)
- RBNZ Orr says aware of asset price inflation, and limits of monetary policy
- Evacuations are underway in Alaska as tsunami sirens sound following the big earthquake
- Intel is getting close to a deal to sell its NAND unit to South Korea's SK Hynix
- Republican senator weighs in - it would be hard to pass a 1.8tln economic relief bill
- 7.4 magnitude earthquake hits off Alaska; tsunami warning issued
- NZ Q3 business confidence improves to -40 (prior -63)
- Schumer says Republican stimulus proposal remains unacceptable
- Trade ideas thread - Tuesday 20 October 2020
- US Senate leader McConnell speaking, says will vote on stimulus this week
- Pelosi and Mnuchin spoke on Monday and 'continued to narrow their differences'
There was some early optimism (or blind faith, if you prefer) with late US headlines crossing that Pelosi and Mnuchin were 'narrowing their differences' and Senate leader McConnell promising a relief bill vote on Tuesday or Wednesday. Pretty soon Senate minority leader Schumer chimed in with comments that Republican proposals were unacceptable, soon followed by a Republican senator saying a 1.8tln bill would be hard to pass. The US Senate have been saying no to an extra stimulus bill for months now and until that changes there is no further stimulus coming. Pelosi has set an end of Tuesday deadline for a pre-election relief bill. Will it be different this time?
After that steady start on the shot of hopium risk currencies soon began to slip away. AUD and NZD are both down on the session here. AUD was helped lower by remarks from RBA Assistant Governor Kent reiterating Lowe's dovishness from last week, and then again later by the minutes of the RBA's October policy meeting which were also dovish.
USD/JPY popped as short-term trading stops were taken out above 105.50 and thereabouts. It managed to gain all the way to above 105.80 briefly and is currently steadying around 105.50 and just above.
Cable and EUR/USD are little changed. Gold is down just a few dollars.
