Forex news for Asia trading for Friday 22 January 2021
- 'Commodity' currencies weak against the USD in Asia
- ICYMI - Biden suspends new oil, gas drilling permits on federal land
- Heads up for US President Biden to speak Friday - could swing markets
- China banks bought 158bn USD in FX for 2020
- HK press report parts of Kowloon to be locked down in the next 3 days
- The RBNZ's own inflation indicator for Q4 +1.8% y/y
- Japan's PM Suga denies reports of Olympics cancellation - determined to go-ahead
- TD see USD/CAD range bound for early 2021, then lower
- PBOC sets USD/ CNY reference rate for today at 6.4617 (vs. yesterday at 6.4696)
- FX option expiries for Friday January 22 at the 10am NY cut
- Bitcoin drops under $30K
- Japan Jibun Bank / Markit preliminary PMIs for January Manufacturing 49.7 (prior 50.0)
- Australia Retail Sales for December (preliminary) -4.2% m/m (expected -1.5%, prior +7.1%)
- UK media says government ministers are urging shutting the border to non-UK citizens
- New Zealand Treasury's December activity index +1.5% y/y
- UK data - January consumer confidence -28 vs. -26 in December
- Japan CPI for December - headline -1.2% y/y (expected -1.3%)
- UK media reports Japan's govmt has concluded Olympic games will have to be cancelled
- UK media report that Chancellor Sunak is planning to 'restore the nation's finances' beginning in March budget
- TD is looking for a weaker EUR/USD - trade recommendation
- New Zealand's Kiwibank no longer expects the RBNZ to take rates negative
- Australia Markit preliminary PMIs for January
- EU's Michel says bloc leaders agreed lockdown measures may need to be strengthened
- Trade ideas thread - Friday 22 January 2021
- New Zealand inflation for Q4 2020: CPI 0.5% q/q (expected 0.2% q/q, prior 0.7%)
- New Zealand - BusinessNZ manufacturing PMI for December: 48.7 (prior 55.3)
- Nissan to pause a UK production line on Friday citing COVID-19 supply disruption
- US' Fauci says it looks like COVID-19 might be plateauing
- US stocks close mixed. S&P and NASDAQ record closes. Dow down on the day
BTC/USD dropped under $30,000 and back to its early-January level during the session here, adding to losses sustained in the past two days or so. It dipped very briefly to just under $29K but has since managed to climb above $30k again.
It was not only BTC falling during the session here, nerves seemed to dominate with lower prices for AUD, NZD, CAD, gold and silver (GBP too) ahead of the weekend. Further compounding nerves a little is new US President Biden to speak in the afternoon Washington time with Europe and UK trade having finished for the day leaving only North American markets open.
EUR/USD was resilient, holding its gains from US afternoon / Asia morning trade. The test will come in Europe time.
Data today - New Zealand inflation rose ahead of expectations prompting analysts to dial back expectations for negative rates from the Reserve Bank of New Zealand.
