Forex news for Asia trading Thursday 24 September 2020
- Japan PM Suga spoke with South Korean Presidnet Moon, wants improved relations
- China patchy economic recovery - "most firms in most regions are seeing a far more muted recovery"
- Morgan Stanley expect iron ore prices to fall further (heads up for AUD traders)
- ANZ see encouragement in activity recovery in Australia, but needs Victoria to ease and lift
- US equity index futures on Globex have bounced from lows, back into positive for the session
- Australian Treasurer Frydenberg speaking on Australia's recession
- PBOC sets USD/ CNY reference rate for today at 6.8028 (vs. yesterday at 6.7986)
- FX option expiries for Thursday September 24 at the 10am NY cut
- What to watch for gold to come bouncing back
- An ICYMI fro BOJ Gov Kuroda - says highly possible support is coming for longer
- BOJ minutes - policy Board says yet again it'll will ease further if needed
- US stock index futures are getting smashed still on Globex
- Pre-election volatility may be nothing compared to after it. Trump refuses to commit to peaceful power transfer.
- South Korea vice fin min warns stock market volatility may expand further
- Hi-ho Silver, away! (lower ... as is gold, stock index futures)
- New Zealand trade balance for August shows a 353m NZD deficit (vs. -350m expected)
- Trump says the White House will decide on FDA's vaccine rules
- CAD PM Trudeau says 2nd wave of COVID-19 infections underway, Fall could be much worse than Spring
- CNN report that US Congress will not pass coronavirus relief before the election
- Head of the FDA vaccine advisory committee also overseeing clinical trial for Moderna COVID-19 candidate
- Citi says the prospect of positive COVID-19 vaccine news is likely still underpriced by markets - here's the FX trade
- AUD traders ICYMI - some disagreement on the October RBA rate cut forecast
- Trade ideas thread - Thursday 24 September 2020
- Testimony by Fed Chair Powell on Thursday will be nearly identical to Tuesday's and Wednesday's
- Fed's Rosengren says baseline is the pandemic will get worse in Fall and Winter
- Major indices tumbled lower. NASDAQ down 3% on the day
The moves lower across equities and precious metals extended during the Asian morning initially. Silver led the way with a sharp drop, gold and equity index futures traded lower alongside. There was a bounce for all as more Asian centres opened and became active but as I update silver, again, is once more losing ground and threatening to drag markets lower. Regional equities are lower following the lead set by US trading on Wednesday.
Currency performance has been quite mixed. USD/JPY is little changed on the session, straddling 105.40 for much of it so far. USD/CHF, meanwhile dropped circa 30 points from its early high (its since retraced just a little). EUR, AUD, GBP all traded similarly to equity moves, losing early but recovering (AUD the exception).
AUD/USD is net a little weaker for the session, under 0.7060. AUD has been weak indeed since Debelle on Tuesday, and then getting another push lower from revised calls for earlier RBA easing since his speech. Morgan Stanley forecasts for a lower iron ore price (adding to similar from Citi and Macquarie earlier in the week) another negative for it on the session here (iron ore is the country's biggest export).
News flow was light only, some US politics capturing interest with Trump refusing to commit to a peaceful transfer of power should the election not go his way.