Forex news for Asia trading for Wednesday 25 November 2020
- China's Sinopharm has submitted its application for COVID-19 vaccine use
- FT reports that the RBNZ to reimpose lending curbs over housing bubble fears
- China says 'no policy barriers' to Taiwan firms listing on the mainland
- Federal Open Market Committee November meeting minutes due Wednesday - preview
- New Zealand home lending has hit a record high
- China ready to strengthen exchanges & cooperation with Germany on COVID-19 vaccine
- Crypto exchange Coinbase plans to end all margin trading from Wednesday
- Westpac say the price of gold has peaked, forecasts
- PBOC sets USD/ CNY reference rate for today at 6.5749 (vs. yesterday at 6.5809)
- FX option expiries for Wednesday November 25 at the 10am NY cut
- A heads up - the 'coal ships stranded off China's coast' is not new news
- Coronavirus - Tokyo restrictions expected to be tightened from this weekend
- Australia Construction work done for Q3: -2.6% q/q (expected -2.0%)
- Analysts tipping a further rise for the Dow
- US President-elect Biden says will make ending 'damaging executive orders' a priority
- UK Cabinet Office briefing says the country faces risk of “systemic economic crisis”
- BoA turn neutral on gold
- China likely to approve a COVID-19 vaccine by the end of the year
- Bank of England warn of a disastrous no-deal Brexit, worse than the virus - UK car industry expect a huge slump also
- RBNZ Hawkesby says if had not eased policy, the NZD would be 5-10% higher
- RBNZ Governor Orr says low interest rates ensure the NZD remains competitive
- US President (elect) Biden says we do not want a guarded border in Northern Ireland
- Bank of America like oil higher on coronavirus vaccine driven rebound in global economy
- Trade ideas thread - Wednesday 25 November 2020
- Private oil survey data shows larger than expected build in crude oil inventory
- Dow and S&P close at record highs. Dow 30,000.
News and data flow was fairly light today but with a significant press conference from the Reserve Bank of New Zealand. I'll come back to that.
The big mover on the session thoiugh has been the euro, EUR/USD climbing back above 1.19. Also moving were regional stocks, all higher after the strong session in the US on Tuesday. Japanese stocks (Nikkei undex) gapped open to their highest since May of 1991.
Reserve Bank of New Zealand Governor Orr spoke at a news conference, most notably:
- he said that while the Bank wanted to be 'operationally' prepared for negative rates the Bank has not yet said it'll be going negative
- he also did not mention comments he has made previously that he wants to work to get bond yields lower
Both these points underpinned the NZD on the session here. Having said this NZD/USD has not done a lot, its up just a touch on the day. Cable is fairly flat and AUD/USD has dropped back from early highs above 0.7370. Australian construction work data (Q3) was overall lower, but public sector worked increased (private sector down) and with a likely public housing construction pick up ahead (admittedly from woeful historic lows) and state government coronavirus-combating spending ahead should see a boost to this measure in the quarters to come.
USD/JPY, USD/CAD, USD/CHF are all little changed.
As I post BTC has dribbled back under 19K, some market-relevant news crossed earlier (see bullets above).
