ForexLive Asia FX news wrap: Positive noises on a US Congress deal
Forex news for Asia trading Tuesday 24 March 2020
- Trump says Republicans should not agree to Democrat stimulus measures
- South Korean stimulus/relief measures include equity stabilisation fund
- Media report: Senate on cusp of coronavirus stimulus deal after agreements in key areas
- Taiwan joins Singapore in suspending the transit of airline passengers through its airport
- Canada to introduce new powers to spend money and raise taxes without having to get the approval of Parliament
- NZ finmin Robertson announces business finance guarantee scheme
- ICYMI - Business in the US can now borrow directly from the Federal Reserve
- Major US airlines are drafting plans for a potential shutdown of virtually all passenger flights in the US
- All people entering Beijing from overseas will be quarantined and will be tested for coronavirus
- Goldman Sachs bullish on gold - cite Fed QE
- South Korea reports 76 new cases of coronavirus, 9 more deaths
- The prospect of a US Congress deal on coronavirus economic relief is slamming the USD
- PBOC sets USD/ CNY reference rate for today at 7.0999 (vs. yesterday at 7.0940)
- FX option expiries for Tuesday March 24 at the 10am NY cut
- Japan stimulus to consumers likely in the form of vouchers, not cash
- US Dem Senate leader Schumer says list of outstanding issues has narrowed
- US coronavirus latest stay-at-home orders
- Westpac revise their outlook for the Australian economy - unemployment to rise even higher, to 11%
- Japan preliminary PMIs (March): Manufacturing 44.8 (prior 47.8) Services 32.7 (prior 46.8)
- ICYMI - slowing of new coronavirus cases in Italy
- Mainland China coronavirus cases tick up from the previous day
- US President Trump says supports stock buyback measures in stimulus package
- Coronavirus - California to take further steps to reduce crowding in outdoor spaces
- US retail chain Neiman Marcus said to be considering filing for bankruptcy
- RBA daily liquidity injection: AUD 6.88bn today
- Australia consumer confidence collapses: 72.2 (vs. 100 prior)
- Trump coronavirus press briefing - says continuing to work with Congress
- Australia flash PMIs for March: Manufacturing little changed, services collapse
- Japan raises travel cautions to German, France
- US Special Energy Representative to be sent for oil talks oil with Saudi Arabia, but unclear when will start
- NZ fin min says RBNZ can do more QE, different instruments
- US FDA grants orphan drug designation for potential Covid-19 treatment Remdesivir
- New York Federal Reserve to buy around USD75bn of Treasuries on Tue, Wed, Thurs, Fri
- Trade ideas thread - Tuesday 24 March 2020
- UK PM Johnson announces lock down effort in response to coronavirus threat
It was a huge surge for global equities during the timezone here today, and similar for currencies against a hapless USD, with a drip-feed of encouraging murmurs out of the US Congress on the prospects for a deal on the coronavirus economic relief package.
Mnuchin and Schumer wheeled-and-dealed to get a fiscal boost agreed to. The total of the package could be up to around 2.5 trillion USD. There will not be a vote until Tuesday (US time) according to latest chatter.
Currencies were higher against the US dollar nearly across the board (certainly for the majors), with AUD and NZD stand-out gainers. AUD/USD is up more than a big figure since early in Asia.
There were other stimulus measures bandied about, from South Korea, Japan and New Zealand (to name just three) as well as continued liquidity injections and QE actions from regional central banks to add further fuel.
Economic news, on the other hand, continued to be negative, as was further news of US cities going into lockdown as well as the whole of the UK. The potential US Congress package outweighed it all though. Also of note, US President Trump gave a White House press briefing on the virus, flagging a lifting of social distancing measures, perhaps as soon as in two weeks, despite the still exponential growth of cases in the US (testing is still restricted in the US).
Regional equities as I post ... some face-ripping rallies.
- Nikkei: +6.12%
- Hang Seng: +3.58%
- Shanghai: +1.48%
- ASX: +2.12%
Circa 10% gain for the Nikkei since the lows on the 19th: