Forex news for Asia trading Friday 23 August 2019
- Chinese state-backed aluminium producer misses another bond payment
- Canadian consulate in Hong Kong has suspended travel to China for local staff
- Japan data earlier - core consumer inflation at a two-year low in July
- Ex-BOJ monetary policy board member Shirai says a lower negative rate is more likely
- Fed's Kaplan says he is paying close attention to signals from bond markets
- Add another to the list of central bank cutting rates
- Fed's Kaplan says he sees potential for a Fed rate cut at the September FOMC meeting
- Remember this? Base case is now no-deal Brexit - Barclays. It just got worse.
- Onshore yuan set at its weakest for 11 years … but stronger than expected!
- PBOC sets USD/ CNY central rate at 7.0572 (vs. yesterday at 7.0490)
- Yen loses a few points despite the aggressive comments from North Korea
- North Korea foreign minister says we are ready for both dialogue and confrontation
- "Why we’re not worried about the Hong Kong dollar peg" (and forecast for the HKD - higher)
- Wait … Trump Admin have been discussing a currency transaction tax that could weaken the dollar
- More from RBNZ Gov Orr - QE is far from our central scenario
- Japan - National inflation data for July. Headline CPI 0.5% y/y (expected 0.6%)
- RBNZ Gov Orr says the 50bp rate cut reduces the probability of having to do more later
- RBNZ Assistant Governor says faced with stubbornly low inflation and low interest rates
- Quick preview of a likely disappointment for the market from Fed Chair Powell's speech
- NZ retail sales (ex inflation) for Q2: 0.2% q/q (expected 0.3%)
- EU said to be stopping import of some Canadian products from September
- Update on China - Canada relations. Still cool.
- ICYMI - Warnings of turmoil in markets if the US intervenes in the Chinese yuan
- More from Kudlow - positive on trade talks, sees more Fed rate cuts
- AUD traders reminder - RBA Gov Lowe speaking on Saturday
- Trade ideas thread - Friday 23 August 2019
The slow slide for the onshore yuan was evident again today by a PBOC reference rate set at its lowest in 11 years but not low as was expected. Meanwhile USD/CNH (offshore yuan) spent much of the session weak also, around 7.10.
NZD/USD was an early mover, moving up on comments from RBNZ Assistant Governor Hawkesby, followed by comments from Governor Orr (see bullets above). AUD/USD did not see much flow-on response, sellers of AUD/NZD holding it from gaining much at all.
USD/CAD is up on the session, CAD weighed on by news of restriction on its exports to Europe as well as continuing tensions with China.
USD/JPY and USD/CHF also gained, Japanese bond yields still on the heavy side not favouring the yen but a still bid USD also a factor. Cable is a touch lower, as is EUR/USD.
The market awaits Fed Chair Powell speaking at Jackson Hole. The full agenda was released earlier by the Kansas City Fed if you'd like to check it out. Bank of England Governor Carney is also to speak on Friday.
Still to come:
