ForexLive Asia FX news wrap: RBNZ decision prompts a drop for the NZD
Forex news for Asia trading Wednesday 24 June 2020
- Operator of cryptocurrency 'exchange' Bithumb seeking an IPO
- Apple iPhone sales and shipments in China fell in May versus April
- ICYMI - China officials indicated that June imports from the US expected to show a dramatic increase
- NZD down after the RBNZ policy announcement
- RBNZ leave the official cash rate on hold as expected, unchanged QE program
- China Beige Book are expecting a contraction for China's economy in 2020
- PBOC sets USD/ CNY reference rate for today at 7.0555 (vs. yesterday at 7.0671)
- FX option expiries for Wednesday June 24 at the 10am NY cut
- Australian jobs data - Skilled vacancy data for May +31.1% m/m (prior -16.4%)
- Another bank on the bull case for gold - high coronavirus counts, low yields
- Here's a gold forecast to above $1920
- BOJ 'Summary of Opinions': Prolonged negative impact of virus on economy looks unavoidable
- Japan PPI services for May +0.8% y/y (expected +0.8%)
- Long EUR is a Morgan Stanley top trade - base forecast is for EUR/USD to 1.20
- Australia's second most populous sate racks up 20 new coronavirus cases
- Australia's CFR says economic activity is now beginning to recover in some sectors
- South Africa to begin coronavirus vaccine human trials this week
- Japan is considering further coronavirus restriction easing
- US coronavirus hospitalisations continue to surge to record highs each day
- Asia forex intervention gets underway early!
- US initiates antidumping investigations of imports of vehicle tires from South Korea
- US Treas Sec Mnuchin examining delaying tax filing deadline to September 15
- Texas coronavirus cases up 5489 vs 3280 yesterday
- Trade ideas thread - Wednesday 24 June 2020
- Private oil data shows a build in headline crude oil inventory
- China's Global Times says Navarro's clarification can't undo damage to phase one trade deal
The Reserve Bank of New Zealand monetary policy meeting was the focus for the kiwi $ on the session here. The Bank left both the cash rate and the size of its Large Scale Asset Purchase (LSAP, the RBNZ's QE program) unchanged. In comments accompanying the decision and further communications from the RBNZ (minutes) the Bank expressed, in a nutshell:
- the willingness to do more if necessary, will monitor and review
- downside risks persist for the economy
- the NZD strength is a negative for NZ exporters.
NZD/USD dropped on the announcement after early small gains ahead of decision time.
Other currencies net saw gains on the session, EUR, AUD, GBP all a little higher to varying extents.
News and data flow otherwise was light. We did get the 'Summary of Opinions' from the Bank of Japan June policy meeting. The Summary comes out many weeks ahead of the full minutes and this time around there was once again not too much in them to surprise. USD/JPY has had a 20 or so point range only.
Private oil inventory survey data released at the end of the US day showed a mild build for headline US crude stocks and draws in products. Oil prices lost some ground and have maintained these here. CAD is sitting around its US session lows against the USD.