Forex news for Asia trading for Wednesday 21 April 2021
- US mutual fund loses nearly $500m, appears to have misvalued its derivatives portfolio
- Moody's on New Zealand - strong policy effectiveness, robust fiscal position
- Bank of Canada monetary policy meeting Wednesday 21 April 2021, preview and where to for CAD
- Australia Retail Sales for March, preliminary: +1.4% m/m (expected +1.0%)
- PBOC sets USD/ CNY mid-point today at 6.5046 (vs. yesterday at 6.5103)
- Coronavirus - Tokyo state of emergency looks likely to begin April 29 (through to May 9)
- Australia - Westpac leading indicator for March: 0.38% m/m (prior +0.01%)
- More on incipient US inflation with Procter & Gamble to raise prices
- South Korea exports surging again in April
- Coronavirus - Pfizer, Moderna-style vaccines could be made locally in Australia
- MUFG analysts see a wide range for USD/JPY in the weeks ahead
- National Australia Bank targeting AUD/USD as high as 0.85
- New Zealand Q1 inflation data: Headline CPI 0.8% q/q (vs. expected 0.8%)
- France - patients in intensive care units (ICU) with COVID-19 hit a new 2021 high
- Trade ideas thread - Wednesday 21 April 2021
- Private oil survey data shows a headline build in crude oil inventory
- Moderna announces a new agreement to supply vaccines to Israel for 2022
USD/JPY dropped under 108 again here today (it did so briefly yesterday also) before rebounding (a smaller rebound this time as I post) and subsequently dropped under 108 again (and is still under as I update). Chatter of a battle of flows, bidders said to be macro-fund interests while shorter-term spec were the sellers. Its been a small range only (20 points or so) but with a few laps between the session high and low. Net for the session yen crosses are a touch lower.
Elsewhere the USD has gained a little; AUD, EUR, NZD, GBP are all a touch weaker (again only in small ranges). Australian March retail sales (preliminary) showed a m/m bounce (and beat of expectations) but the y/y result was underwhelming. New Zealand headline Q1 inflation data came in higher than the previous quarter and in line with expectations. There is still a 'core' inflation reading to come from NZ today, the Reserve Bank of New Zealand's 'Sectoral Factor Model Inflation Gauge'.
In US news, huge consumer products company Proctor & Gamble said they were set to raise prices on a range of products from (northern) Autumn (Fall). This may attract the attention of Federal Reserve officials who have repeatedly said they expected inflation to be transient. It would be unusual indeed for a major firm such as P&G to raise prices if they believed rising input costs were transient only. It would also be unusual for such a major firm to reverse price rises soon after hiking them. In other US news, the (now ex) police officer accused of killing George Floyd was found guilty of all murder/manslaughter charges that he faced.
The probability of further coronavirus-related state of emergency declarations in Japan firmed again today.
The People's Bank of China set the mid-rate for USD/CNY lower again today (i.e. stronger for onshore yuan).
Regional equities:
Japan's Nikkei -2.2%, Topix -2.2%
China's Shanghai Composite -0.8%
Hong Kong's Hang Seng -1.6%
Australia's S&P/ASX 200 -1.4%
