Forex news for Asia trading Wednesday 22 July 2020
- Hedge Fund flows are all that matter for price moves
- Tokyo new cases of coronavirus around 235 today
- Australia preliminary retail sales for June +2.4% m/m (prior was +16.9%)
- PBOC sets USD/ CNY reference rate for today at 6.9718 (vs. yesterday at 6.9862)
- FX option expiries for Wednesday July 22 at the 10am NY cut
- Gold, silver surging - silver limit up for Dec futures on the Shanghai Futures Exchange
- Australian media say Victoria state new coronavirus cases today circa 484
- Japan Jibun Bank preliminary PMIs for July, Manufacturing 42.6 (prior 40.1) & Services 45.2 (prior 45.0)
- Australia Westpac leading index for June: +0.44% (prior +0.19%)
- UBS S&P500 target is 3,300 (in about a year's time)
- Citi says inflation would be a risk to the rising price of gold
- Silver is on the move again - highest since 2013
- Boeing’s 737 MAX isn’t likely to resume widespread passenger flights until early 2021
- Staying in favour of gradual upside; staying structurally long EUR/CHF for 1.15
- US coronavirus deaths +1,003, single-day highest since early June
- US House leader Pelosi making positive comments on next stimulus package
- Japan is maintaining event restrictions, further tightening coming from the virus panel meeting today?
- Japan has approved a coronavirus drug - dexamethasone
- NZD on track to test 0.6800 later in 2020
- RBNZ says domestic financial markets have stabilised, reduces its intervention
- Mnuchin says hopes to get the new coronavirus economic rescue bill passed by end of July
- USD facing more questions about its status as the primary reserve currency
- Trump says Americans should wear a mask when cannot socially distance
- UK press reports the UK is close to abandoning hope of a post-Brexit trade deal with EU
- Trade ideas thread - Wednesday 22 July 2020
- Private oil data shows large build in crude oil inventory
There was little of note to move FX rates out from Asia today as small ranges prevailed. The huge shunt lower for the USD during UK/US time gave way to largely sideways trade here. Trump recommenced his coronavirus news briefings, yes a second wave, but markets are numb to his empty rhetoric and his comments prompted no response.
Pelosi and Mnuchin comments were both constructive for likely further stimulus from the Congress.
As Asian markets got more active for the session gold and silver added to their recent gains, gold popped above 1860USD at one stage and had has not not pulled lower by much at all as I update.
Local virus outbreaks continue to consolidate at higher numbers in Australia (in the state of Victoria) and Tokyo.
- China's Shanghai Composite +1.5%
- HK's Hang Seng +0.54%
- Nikkei (Japan) -0.24%)