Forex news for Asia trading Thursday 21 November 2019
- Here is more on the China economist still seeing likely phase one trade deal with the US this year
- China's Premier Li Keqiang - will keep stable macro policies
- China economist says phase one trade deal likely this year if there is no disturbance
- Here is more on China’s chief negotiator's 'cautious optimism' on a trade deal
- AUD traders - Moody's downgrades Australian states' outlook to 'negative'
- China's head trade negotiator Liu "cautiously optimistic" about reaching a trade deal
- Morgan Stanley like the AUD, cite RBA dovishness diminishing
- China's Vice President says China still faces severe external and internal challenges
- PBOC sets USD/ CNY reference rate for today at 7.0217 (vs. yesterday at 7.0118)
- FX option expiries for Thursday November 21 at the 10am NY cut
- Goldman Sachs expect the global economic growth slowdown to end soon
- Monetary Authority of Singapore official says monetary policy remain appropriate
- White House trade adviser Navarro says China is exploiting a loophole in solar tariffs
- Singapore Q3 GDP beats estimates: 2.1% q/q annualised vs 1.8% expected
- More headlines that Trump is expected to sign the Hong Kong support bill
- More central bank minutes to come - today its the ECB's turn
- Bank of Japan “stealth tapering”?
- German finance ministry monthly report - notes weakening global economic momentum
- FOMC minutes response - likely on pause unless a significant downside risk emerges
- Japan (extra) fiscal stimulus - package around 10 tln yen
- Here is a long EUR recommendation based on an expectation of German fiscal stimulus
- The verbatim of Trump's latest comments is another sign the deal is falling apart
- US House of Representatives appear poised to approve bill supporting Hong Kong protestors
- Trump says he thinks China wants a trade deal more than he does
- Trade ideas thread - Thursday 21 November 2019
- UK election poll: its Cons on 42 vs. Lab on 31
Discouraging news on the prospects for a US-China trade deal during the US session continued in the early hours of Asia. Negative reports built (see bullets above) which led to a gradual drip lower for forex risk currencies. Using AUD/JPY as the guide, it fell away, with USD/JPY dropping under 108.30 and AUD/USD under 0.6790.
Some optimism returned with a Bloomberg report on 'cautious optimism' comments from China's Vice Premier and leader of the trade negotiating team Liu He - these were sourced from someone who heard him say it! (At a dinner speech, see the bullets above for more).
Otherwise, data and news flow was barely existent. EUR/USD traded up towards 1.1080 and has flat-lined since. Cable has added on around 10 points for the session while the pattern of trade for CAD and NZD has broadly mimicked that of AUD.
The PBOC cut a big figure from the CNY mid-rate setting today (OK, it was only 99 points not a whole big figure. If Yi Gang wants to get snarky in the comments, he can go right ahead). Gold moved higher on the poor trade news but has since given it all back on the ore optimistic comments already referred to.