Forex news for Asia trading Monday 26 August 2019
- Dutch government in talks with 325 British-based companies that are considering relocating after Brexit
- More on China's 'wants to resolve trade war' comments today. Just after they hiked tariffs?
- China vice premier Liu He says China is willing to resolve trade dispute with US
- Japan chief cabinet secretary Suga says auto tariffs negotiation with US still in progress
- Here we go - PBOC MLF injection
- Reminder, your limit for USD/CNY today is circa 7.1981
- PBOC sets USD/ CNY reference rate for today at 7.0570 (vs. Friday at 7.0572)
- China press report the country is getting closer to Hong Kong intervention
- It appears Iran's Foreign Minister has headed off to China after departing France
- Bitcoin jumps $600
- South Korea's Vice fin min again - to take stern steps if FX moves are excessive
- US 10 year Treasuries - yield hits its lowest in 3 years
- US President Trump says had a good meeting with Canada PM Trudeau
- South Korea's Vice fin min says to take pre-emptive measures on market if needed
- US President Trump wants to use nuclear weapons … against hurricanes
- New Zealand data - Trade balance (July) -685m (expected -254m)
- Iran's foreign minister paid a visit to the G7 summit in France
- Trade ideas thread - Monday 26 August 2019
- Trump's weekend comments on trade war escalation - regrets, retractions, and reversals
- China's People’s Daily says Trump’s escalation of the tariff war is a “strategic mistake”
- Hong Kong media report police have fired a warning shot
- Good morning Monday! Early FX price guide. USD/JPY hits a new low for the year.
- Trump says Japan and the US have reached a trade agreement in principle
- Mnuchin: Trump wants US firms to start looking beyond China
- RBA's Lowe says monetary policy can push up asset prices but can't deliver medium-term growth
- Trump is serious about ordering US companies out of China and he has the power to do it
- The key to trading fresh sentiment
The escalation of the trade war on Friday and further negative developments over the weekend played out in early moves here in Asia with flows out of 'risk' and into safe haven trades such as the yen.
USD/JPY traded to lows below 104.50, setting a new low for this year. Yen crosses declined alongside, most pronounced for risk currencies. AUD/JPY, for example, fell heavily with AUD/USD off 50+ points to be lows around 0.6690. NZD/USD fell also, lows were around 0.6342.
EUR/USD managed a small gain to get briefly above 1.1160. Oil & equities traded off while gold surged above 1550USD at one stage
Going into the daily onshore yuan fixing markets steadied somewhat and when the mid-rate for the session came in barely changed from Friday a lot of the immediate fear dissipated and currencies retraced further.
AUD/USD has managed highs on the bounce to around 0.6750. Further benefit was seen with reports China's Vice Premier Liu He (you may remember him from trade negotiations with Mnuchin and Lighthizer) making concilatory comments along the lines China wanted to resolve the trade war. I'm sure that'd be a goal, but China hiked tariffs as recently as Friday so I'd excuse you if you viewed his comments with some suspicion.
Regardless, USD/JPY jumped to a session high above 105.75 before coming back to 105.50-off, just under there as I update.
A volatile day but, as I write, major traded currencies are barely net changed for the session! The yuan is an exception, its weak, offshore currently quoting around 7.1615 after highs for USD/CNH above 7.18 earlier.
Still to come:
