Forex news for Asia trading on Monday 20th September 2021
- USD and yen in favour - Evergrande risk off 'contagion' trade hits Asia markets
- Evergrande, wider property sector shares, taking a beating in Hong Kong trade
- Malaysia said it welcomes China's application to join the Trans-Pacific trade pact
- Bank of Japan meeting this week - no change expected - preview
- Coronavirus - Australian state NSW appears to be past its peak new daily case count
- UK PM Johnson says market forces will deal with supply shortage issues
- China media on "How Evergrande Could Turn Into ‘China’s Lehman Brothers'"
- Heads up for an RBNZ speech this week - likely to be a kiwi focus
- Federal Reserve FOMC meeting this week - preview
- UK data - Rightmove house prices for September 0.3% m/m (prior -0.3% m/m)
- UK energy provider wants a bailout
- UK PM Boris Johnson will tell Amazon’s Jeff Bezos to pay more tax
- New Zealand services PMI for August 35.6 (prior 57.9)
- The party has ended for the world's biggest real-estate boom
- Reports that US Senator Manchin thinks Congress should pause $3.5tln vote until 2022
- Trade ideas thread - Monday 20 September 2021
- Weekend Australian coronavirus news - riots and roadmap
- Reports EU free trade talks with Australia at risk over submarine deal
- Iran's foreign minister is to travel to the US for UN meeting Tuesday
- Saturday liquidity injection by the People's Bank of China
- Monday morning open levels - indicative forex prices - 20 September 2021
- The best thing I read this weekend on Evergrande
- Chinese Premier Li Keqiang spoke on stabilizing supply chains, commodity prices
Developments around troubled Chinese property development Evergrande worsened. Reports over the weekend of senior executives bailing out of their shares prior to the troubles, the firm seeking to settle its debts using unsold apartments, liabilities growing ... Chinese markets were closed today (and will be tomorrow also) but Hong Kong's were open and Evergrande shares there were pummelled lower, down over 10% to extend losses further as I post. The broader Hang Seng index dropped 3% (as I post) with the property and insurance sectors the worst hit.
The (offshore, CNH) yuan dropped, losing further ground after losses in the back half of last week. The Australian dollar, too, was a casualty, its falling towards 0.7230 as I post. Other currencies have been relatively quiet but there is, as I update, a move into USD and yen on a haven basis. EUR, GBP, NZD, CAD all down on the session vs. the buck.
BTC, gold also lower. Some of the 'contagion' in seemingly unrelated assets is selling to fund margin calls in more troubled areas (such as equities).
