Forex news for Asia trading on Wednesday 24 November 2021
RBNZ, Read from the bottom up for the time sequence:
- New Zealand - "RBNZ's OCR track ... not as aggressive as it could have been"
- New Zealand - "the time of cheap money is over, and interest rates are rising, swiftly"
- RBNZ Governor Orr says the reopening of the New Zealand border does not change the policy outlook
- RBNZ raises its cash rate by 25bps, as expected
- China Fantasia (property developer group) says it'll pay bond coupon due November 25
- Biden has invited Taiwan to the US "Summit for Democracy" in December
- Packed agenda coming up in the US on Wednesday - last trading day before the holiday
- Elon Musk has sold more of his shares of Tesla
- BoA expect two rate hikes from the Bank of England by May 2022
- Japan economy minister Yamagiwa says watching yen carefully
- PBOC sets USD/ CNY mid-point today at 6.3903 (vs. estimate at 6.3903)
- Japan PM Kishida confirms will release oil from reserve in coordination with the US
- Monetary Authority of Singapore official says staying careful, vigilant on price developments
- Japan preliminary PMIs for November: Manufacturing 53.5 (vs. expected 54.5)
- Australia Construction work done for Q3 -0.3% q/q (vs. expected -3.1%)
- Goldman Sachs on Biden's oil reserve release - worth less than $2 / bbl
- NZ to allow full vaccinated New Zealanders and Australians entry from January 16
- Singapore Q3 GDP +7.1% y/y (vs +6.5% expected)
- Over 70 Japanese firms set to launch a digital currency as early as 2022
- ICYMI - The 2nd largest US cinema chain to begin accepting payment in crypto
- ICYMI - India is looking to ban most private cryptocurrencies
- China financial press reports analysts believe PPI has likely peaked due to fall in coal prices
- EU’s Sefcovic says post-Brexit talks will ‘probably’ drag into next year
- Goldman Sachs on Powell's nomination - rate hike in July 2022 on continuity in policy
- The new head of Germany's Bundesbank will be chosen this week
- Japan's oil reserve release to be 4.2m barrels
- Trade ideas thread - Wednesday 24 November 2021
- Private oil survey data shows build in headline crude oil inventory
The Reserve Bank of New Zealand announced the expected 0.25% hike to their cash rate today and mapped out a more aggressive path ahead for further hikes. At his news conference Governor Orr once again said 25bp hikes are appropriate for the time being after there was substantial speculation in markets for a 50bp hike today.
NZD/USD has since traded lower after the announcement and extended its drop after Orr's press conference. AUD/USD has fallen alongside. From Australia today we had Q3 construction work data which came in negative, lockdowns impacting, but not nearly as bad as was widely expected.
EUR/USD gained on little obvious fresh news, as did CAD against the USD as follow-through from Biden's oil reserve release announcement sent oil prices higher. USD/CAD has subsequently had some retracement.
USD/CHF and USD/JPY inched higher but USD/JPY has come off its session high. Cable is little changed.
Markets are awaiting the Federal Open Market Committee November minutes due for release on Wednesday US time. Note that Wednesday is the last full day of trading for US markets for this week, Thursday is the Thanksgiving holiday.