Forex news for Asia trading Thursday 23 January 2020
Coronavirus / China
- Coronavirus - Taiwan’s China Airlines says suspends flights to Wuhan
- Coronavirus news - HK has suspended high speed rail ticket sales for Wuhan
- Coronavirus - HK media reports that Macau has cancelled all Lunar New Year festivities
- Chinese medical professional who contracted the coronavirus says his condition has improved after 1 day treatment
- The shut down of Wuhan is an enormous event - the numbers are staggering
- HK briefing announced at 0230GMT - on 2nd coronavirus case
- Moody's says coronavirus poses a short-term risk for Australian airports
- China State TV says there are now 571 coronavirus cases confirmed
- China coronavirus - Have roads out of Wuhan been blocked? (Rail and air travel already blocked)
Australian unemployment rate dropped unexpectedly:
- CBA has changed its RBA rate cut forecast also, from February to April
- ANZ no longer forecasting an RBA rate cut next week
Market probability of an RBA rate cut next week has been slashed
- More on the Australian jobs report (the unemployment rate unexpectedly fell)
- AUD marked higher on the lower unemployment result from Australia
- Australian December Unemployment Rate: 5.1% (expected 5.2%)
Other:
- Australia news - air traffic control have lost contact with a large air tanker fighting fires in NSW
- NZ finmin Robertson says more government spending to come to support economy
- Fitch sees manufacturing investment in China rising after the trade deal signing with the US
PBOC conducts targeted MLF: 1 year loans, 3.15%, 240.5bn yuan
- PBOC sets USD/ CNY reference rate for today at 6.8876 (vs. yesterday at 6.8853)
- FX option expiries for Thursday January 23 at the 10am NY cut
- University of Minnesota student jailed in China over tweets
- Reuters polling of analysts on the US - most see Fed on hold this year, next
- Australia survey of consumer inflation expectations for January: 4.7% (prior 4.0%)
- Japan trade balance for December Y -152.5bn (vs. expected Y -152.6bn)
- NZD traders - heads up for the inflation report due Friday
- Spain’s new government announced a 5.5% rise in the minimum wage (back dated!)
- Trade ideas thread - Thursday 23 January 2020
- Oil - private survey of inventories shows a build in headline crude stocks (draw was expected)
From 10am local time Wuhan in China has been completely sealed - not traffic or people are allowed to leave. The number of cases continued to rise today, not just in Wuhan but elsewhere and the death toll also rose.
We saw the yen gain today, alongside the CHF as concerns mounted. Gold, too, moved higher but has since given its gains back.
The other news of note today was on the data agenda, with the Australian employment report (for December) showing a surprise drop in the unemployment rate. The UAD was marked higher immediately upon the data release and has managed to hold its gain. Banks have been quick to remove their forecasts for a February meeting rate cut by the Reserve Bank of Australia.
USD/CAD has continued its move higher from the overnight Bank of Canada reaction. Cable has been fairly steady around and just under 1.3140 with no fresh news for it here during the session.
EUR/USD is a few points lower, as is EUR/JPY.
