Forex news for Asia trading Wednesday 25 September 2019
- Heads up for likely remarks from US President Trump Wednesday - timings
- ANZ still expect a further RBNZ rate cut in November
- China said to prepare for buying more US pork
- RBNZ responses coming in - dovish but not as dovish as expected
- RBNZ leave rates on hold, as expected
- Goldman Sachs says maintaining Saudi oil exports level is achievable
- BOJ board member Masai says global financial markets risk averse
- Goldman Sachs says constructive on US economy, US safest place for capital
- PBOC sets USD/ CNY reference rate for today at 7.0724 (vs. yesterday at 7.0729)
- FX option expiries for Wednesday September 25 at the 10am NY cut
- China's foreign minister says US-China relations are at a crossroads
- More on RBA Governor Lowe's speech overnight - what he said on QE
- Oil - Saudi Aramco will update information on expected timeline of repairs by September 30
- BOJ July meeting minutes shed little light
- French president Macron says conditions in place for return to negotiation with Iran
- China Beige Book says the country's economy the weakest it has been all year in Q3
- Trump impeachment - White House preparing to release whistleblower complaint to Congress
- RBA Gov Lowe spoke Tuesday - opinion varies if he signalled an imminent rate cut
- More on Macron, Johnson urge Iran's Rouhani to meet Trump
- New Zealand - Trade balance for August: NZD -1565m (expected -1400m)
- French President Macron advised Iran's Rouhani to meet with US President Trump
- FT on impeaching Trump - Democrats would probably struggle to get enough votes
- Here is what the US tariffs on the EU will look like (coming next month)
- Brexit - Looks like the Financial Times has written the obituary for Boris Johnson's prime ministership
- Trade ideas thread - 25 September 2019
- Nancy Pelosi has announced a formal impeachment inquiry of President Trump
- Oil - private survey data shows surprise build in headline crude inventory
Late NY time saw oil inventory survey data published (the private report ahead of official government data Wednesday morning US time). A drawdown was expected and got a build instead. Oil prices lost ground on the data and have tracked sideways to slightly up since.
Soon after we got confirmation that US Congress House Leader Pelosi was launching an inquiry into impeaching President Trump. This had been the talk for the previous 18 hours or so which blunted market impact on the announcement.
Somewhat bizarrely (sarcasm alert) we had a report out on China (from China Beige Book) saying the economy is slowing at its worst in Q3. Fancy economics moving markets, I thought it was only politics! AUD lost a few points.
Soon enough it was on to the focal scheduled event, the Reserve Bank of New Zealand policy announcement. The Bank left the cash rate on hold as was pretty much unanimously expected and issued an accompanying statement that was not as dovish as the market was expecting. It was not hawkish but the response seemed to turn on the phrase they'd do more 'if necessary'. NZD/USD popped up to a fresh session high, towards 0.6350 and has since dropped back to circa 0.6330 where it is as I update. As I post BNZ have revised their calls for the RBNZ to a cut In Nov and then again in Feb (adding the February call to the their November call).
News came after this China was considering buying pork from the US. If you've been tracking events in China you'll know that pork supplies have been curtailed due to swine disease. There was some reading that the potential purchase indicates an easing in tensions with the US but I reckon that is over reading the move. It might be a convenient bone to throw at the US though.
AUD/USD popped to highs just above 0.6800 on this news and has since turned right back down to its session lows around 0.6785. Yeah, small range.
EUR, GBP, CHF, CAD and yen are all a few points lower against the USD on the session. USD/JPY has had a near 40 point range for the day and is currently near the top end. If there was 'risk off' it is not reflected in the yen today. A BOJ board member flagged the potential for further easing ahead, not unusually.