Forex news for Asia trading for Wednesday 21 October 2020
- Fitch says NZ record of prudent fiscal management lessens risks
- An Australian company have a test for COVID-19 'superspreaders'
- Currencies higher against the USD, gold too. Globex equity indexes up.
- New Zealand credit card spending for September +1.0% m/m (prior -5.8%)
- AUD and NZD are having upswings in Asia - now on approach to US timezone resistance
- BOJ's Sakurai says the Bank's easing is exerting the intended effects
- Deutsche Bank on the Chinese yuan - watching November 3 for USD/CNY direction
- PBOC sets USD/ CNY reference rate for today at 6.6781 (vs. yesterday at 6.6930)
- FX option expiries for Wednesday October 21 at the 10am NY cut
- Australia flash retail sales for September fall 1.5% m/m
- HK airline Cathay Pacific to cut almost six thousand jobs
- New Zealand reports 25 newly confirmed COVID-19 cases (2 community transmission)
- South Korea October export figures (1st 20 days) +5.9% y/y (per working day)
- New York Times report on Trump holding an account at a Chinese bank
- Australia - Westpac leading indicator for September +0.22% m/m (prior +0.48%)
- More from Pelosi - says talks with Mnuchin on Tuesday provided more clarity
- NZD traders note - BNZ have raised their forecast for the 2021/21 milk price
- Goldman Sachs EUR/USD forecasts (spoiler - down then up)
- Mike Bloomberg and Bill Ackman have discussed a deal to take Bloomberg public
- Here is a 0.75 AUD/USD year-end forecast
- Spokesman for Pelosi says moved closer to an agreement
- FT report that UK PM Johnson’s 3-year spending master plan to be ditched
- Trade ideas thread - Wednesday 21 October 2020
- Pelosi says she's still hopeful a deal is reached this week
- Meadows says talks have finished for the day - still a way to go
- Private oil survey data shows a build in headline crude oil inventory
Hopes for pre-election US coronavirus economic relief stimulus were dealt another blow late in the US day with the usual round of comments from the players such as ;
- Pelosi and Mnuchin will speak again tomorrow
- Pelosi said she 'hopes' an agreement can be reached by the end of the week
- McConnell warning a large size package would not pass the Senate
So far so same-old. Also same-old were encouraging comments from Pelosi and Meadows along the lines of narrowing differences, making progress and what have you.
The USD had strengthened in the US afternoon as it became evident there would be no agreement. And indeed, Pelosi's Tuesday "deadline" passed without a deal.
After a bit of sideways shuffling in early trade currencies began to reverse that move though, gaining as the morning progressed. US equity index futures traded higher from the off when Globex opened for the (US) evening session.
There was little on the news wires to hang a narrative on for the up-move in equities, currencies, and even gold. Perhaps its Pelosi ''hopes' for an end of week deal that were grabbed hold of? But how many times have we heard this, or similar?
US politics featured the New York Times saying Trump has a bank account at a Chinese bank (the name of the bank the previously undisclosed account is held at was not revealed). The explanation offered by Trump's people in the article was that the account was used to pay taxes in China, which seems reasonable. If true. Who knows, and besides, Trump has shrugged off much worse than this.
The Chinese yuan gained to levels not seen since the middle of 2018.
US stimulus talks to continue:
