Forex news for Asia trading Wednesday 21 August 2019
- Forecasts for currencies lowered against a still strong USD
- NZ data - Credit card spending for July -1.8% m/m (prior +1.5%)
- Goldman Sachs forecasts USD/JPY to 103 (3 month horizon)
- Data shows central banks continue to accumulate gold, buying even as prices rise
- White House chief of staff Mulvaney acknowledges US facing a recession
- Irish press: Dublin refuses to engage with UK on plan for no-deal Brexit
- Japan press reports Japan will upgrade its estimate of North Korea’s nuclear weapons capability
- PBOC sets USD/ CNY reference rate for today at 7.0433 (vs. yesterday at 7.0454)
- Australia data - Westpac Leading Index for July: +0.14% m/m (prior -0.08%)
- Yen 'well supported' - further fall forecast for NZD/JPY
- More from the RBNZ's Assistant Governor Hawkesby on the impact of the 50bp interest rate cut
- AUD levels for the session ahead - support, resistance
- JPMorgan metals trader pleads guilty to spoofing, resigns from bank
- Here's a call for a September and December Federal Reserve rate cut
- Westpac lower their NZ milk price forecast
- Fed Chair Powell to speak on Friday - preview
- RBNZ's Hawkesby says the Bank's big rate cut reduces the chance of QE
- US Sec of State Pompeo says US will take action to prevent Iranian tanker delivering oil to Syria
- DoubleLine's Gundlach says the Federal Reserve has lost control of interest rates
- A couple of responses to the RBA Minutes - October rate cut remains in play
- Trade ideas thread - Wednesday 21 August 2019
- Analyst says gold set for consolidation lower (short term)
- Fed's Daly says does not think the US is headed towards a recession
- Private oil data shows larger than expected draw in crude oil inventory
There was only a light flow of news and data for the session here in Asia. Moves across forex reflected an easing in fear with flows out of yen and, broadly, into 'risk' FX.
AUD/JPY saw benefit, rising from straddling 72.00 to around 72.30. AUD/USD moved higher also, but found offers to hold the topside to circa 0.6790.
USD/JPY has managed to retain its gain. From around 106.25 it halted at 106.55.
NZD/USD was little impacted by reported comments from Reserve Bank of New Zealand Assistant Governor Hawkesby (see bullets above) but later managed to rise toward 0.6423 and then return to barely changed on the session as I update around 0.6411.
EUR/USD and CAD against the USD also had small rises (ps CAD CPI is due later Wednesday, 1230GMT).
Gold is down a few dollars while oil has gained; a larger than expected inventory draw was reported by the private survey ahead of official data due in the US morning.
Still to come:
- FX option expiries for Wednesday August 21 at the 10am NY cut
- CAD traders heads up preview for the Canada CPI data due Wednesday
- Canada CPI data due Wednesday - preview
AUD/JPY on the session: