Forex news for Asia trading Tuesday 25 June 2019
- Iran's foreign minister says latest US sanctions means 'closing channel of diplomacy for ever'
- More on Boris Johnson saying he is serious about 'no-deal' Brexit threat
- Xinhua confirm US and China trade talks to resume
- Reports Trump has considered ending post-war Japan defense pact
- China analysts says room for the PBOC to cut RRR this month or next
- Morgan Stanley boost their forecast for gold
- PBOC sets USD/ CNY reference rate for today at 6.8580 (vs. yesterday at 6.8503)
- Trump says he has no plans to do anything on Fed's Powell
- China think tank says country can take a tougher line on US trade talks
- Chinese Commerce Ministry says China, US trade teams to have agreed keep communication
- Fed Board reject Moore to start a cryptocurrency central bank
- BOJ April meeting minutes … most members still believe inflation eventually to 2%
- Japan, PPI (services) for May: 0.8% y/y(expected 1.0%)
- Australia - ANZ Roy Morgan weekly consumer confidence: 114.3 (prior 114.2)
- US Trade Representative Lighthizer Spoke with China's Liu He on Monday
- Trump to meet Putin, Xi, Modi, Merkel, and others at G20
- EUR/USD forecasts from 1 to 12 months
- NZ trade balance for May: 264m (expected 250m)
- DB on why RBA speeches are more important than official statements
- Japan, US and Australia begin own 'Belt and Road' (LNG project)
- OECD sec general says OECD is very concerned about US - China trade tensions
- Citi on USD/JPY - no follow through lower
- AUD levels to watch for the session (support - resistance)
- NZ labour market survey - Q2 index 116.9 (Q1 was 114.2)
- Boris Johnson says UK parliament is ready to back a no-deal Brexit
- Fears mount amongst some in EU that no-deal Brexit is unavoidable
- US intelligence community assess that North Korea is not ready to denuclearise
- Trade ideas thread - Tuesday 25 June 2019
- Stick July 10 in your diary - Fed's Powell testimony
USD/JPY dropped during Tokyo morning trade, down towards 107.00 (not quite there as i update ...whoops there it goes!) and its lowest since early January this year. Yen crosses slid alongside.
There was no specific catalyst to point a finger at, continued geopolitical tensions (US/Iran the focus) were a boost for yen. Ahead of the G20 Japanese authorities will not be too dissatisfied with a higher currency, it should serve to blunt too much criticism on yen weakness from the US. China is in the same boat, and although the mid rate for USD/CNY was set a little higher by the PBOC today (ie. onshore yuan lower) it moved lower last week (ie stronger CNY).
News circulated that the US and China had indeed begun trade talks again. Xi and Trump will meet at the G20, the meeting seems likely for Friday (latest talk, not yet confirmed).
NZD/USD traded higher today. The only item of note from NZ was the trade data, although the RBNZ meet tomorrow and expectations are for an on hold decision, not a cut. NZD/USD was supported by some AUD/NZD selling. This was a factor weighing on AUD, along with AUD/JPY sellers. AUD/USD fell from highs just above 0.6970 (and therefore just above its NY time high) to be back around 0.6965 as I post.
EUR/USD traded to a three month high to touch circa 1.1410.
Gold continued to add to its gains, above 1435USD.
Still to come:
