Forex and Bitcoin news for Asia trading Thursday 21 June 2018
China trade:
- More from China on trade - will take action to defend its interest
- Daimler the first major company to issue a profit warning in the wake rising tariffs
- China Vice Premier to meet with European delegation on trade
- Goldman Sachs likes long AUD/USD and short USD/CAD
- Heads up for AUD traders - tax cuts to be approved in parliament today
- BOJ's Funo says risk of financial system instability is not large
- About that weaker CNY setting from the PBOC … to encourage capital outflow?
- PBOC sets USD/ CNY reference rate for today at 6.4706 (vs. yesterday at 6.4586)
- Q1 New Zealand GDP: 0.5 % q/q (expected 0.5%)
- Trump rally comments crossing now.
- NZD remarks from Westpac, including targets for NZD/USD
- Japan is set to sign a free trade agreement with the EU on July 11
- Westpac on AUD - now below weekly fair value. Risks and target for AUD/USD
- Trade ideas thread - Thursday 21 June 2018
Oil:
- More on Iran signalling it'll accept a small rise in OPEC crude output
- FT says Saudi Arabia targeting collective increase of 600-800k barrels per day
- Saudi Arabia included in MSCI Emerging Markets Index
News and data flow was light today but we did get a few mouths opening; from the US President (Trump at a rally), from the BOJ (board member Funo) and from China (Commerce Ministry).
The net result was some minor currency movement only.
OK, here we go.
For data the day's focus was on economic growth numbers from New Zealand, Q1 GDP coming in bang on estimates, with little impact on the currency.
President Trump addressed a rally of supporters, tailoring his message for them and thus a pretty much as expected collection of populist guff.
Bank of Japan monetary policy board member Funo spoke (see bullets above), staying on message with continued easing from the Bank. The yen did manage a few points weakness around the time of his comments, I'll give him credit but with the usual correlation/causation caveat.
China's Ministry of Commerce (see bullets above) comments were confronting - not backing down on promising to take steps to retaliate to US trade war moves.
Forex movements were only small, though, and mixed.
USD/JPY had some direction, putting on 25+ points or so from low to high. USD/CHF is higher also, adding on around 20 points from its late US levels.
AUD/USD had a minor wiggle, down 10, up 20, down 20 .... to be a little net lower on the session here. NZD/USD has been a more consistent loser (no offense) with a 30-odd point slide.
Gold, too, a loser, down a few dollars only in keeping with the small moves here. EUR, GBP - both lower against the dollar also.
The People's Bank of China set the onshore yuan lower again today, the offshore has made a new 5-month low. There are persistent expectations of cuts to come from the PBOC in the RRR, and not just for a narrowly targeted cut as we are accustomed to - the chatter is for a cut that will cover a wider spectrum of banks than usual. I posted earlier on capital outflows from China, the PBOC is walking a fine line managing easing expectations and a lower yuan.
Regional equities are mixed, the Nikkei is in the green while HK and Shanghai are down a little.
Oh - oil - there are indications from Iran they may support Saudi/Russia moves for greater oil output .
Still to come:
