Forex news for Asia trading Wednesday 26 February 2020
- Preview - China PMIs due later this week & next - early indications are poor
- Japan PM Abe to request cancellation, delay, downsizing of sports, cultural events for 2 weeks
- Stock market sell-off: investors are now factoring in a previously unthinkable scenario
- Hong Kong fin min promises 120bn HKD spending to help economy, warns on coronavirus impact
- Brexit - If the UK and EU revert to WTO trade rules then a UK recession likely in 2021
- China Beige Book private data "a lot worse"
- South Korea will close all childcare centres through to March 8 over virus fears
- US soldier based in South Korea tested positive for coronavirus
- Mainland China total coronavirus cases increase to 78,064. Death toll 2,715.
- Response to the Australian Q4 Construction work data earlier today, a weak end to a weak year
- Here is one South Korean export definitely set to fall - face masks
- ANZ look for EUR/USD to 1.04
- PBOC sets USD/ CNY reference rate for today at 7.0126 (vs. yesterday at 7.0232)
- FX option expiries for Wednesday February 26 at the 10am NY cut
- South Korea coronavirus cases total now to 1146
- Australia Construction work done for Q4: -3.0% q/q (expected -1.0%)
- Japan will ban foreigners who have visited Daegu in South Korea
- Cruise operator Royal Caribbean says it has cancelled 30 cruises in Southeast Asia
- Citi recommended short EUR/USD (target, stop levels)
- UK data: BRC Shop Price Index -0.6% y/y (expected -0.3%)
- HK press - China ‘fully expected’ to meet trade deal terms despite coronavirus, top US officials say
- Senior IOC member says Tokyo Olympics could be cancelled due to coronavirus
- Australia construction data due today (an input to Q4 GDP) - preview
- Fed's Kaplan says he is not thinking about a rate cut right now
- RBA meet March 3 - preview (spoiler, wait for an April rate cut). And a target for the AUD.
- Only five US states have the capability to test for the coronavirus
- San Francisco has declared a State of Emergency to help prepare for a potential outbreak
- Trade ideas thread - Wednesday 26 February 2020
- There are more than 90 coronavirus cases in Singapore. And zero deaths.
- Private oil inventory survey data shows smaller than expected in crude oil stock
USD/JPY ticked back to above 110.50 during the session (its just under as I post) with coronavirus developments in Asia yet again the focus. Regional equities were yet again heavy following Tuesday's continued rout in the US. Cases continue to drive higher in South Korea, with harsher containment steps being taken. Japan, too, is taking further steps to limit the spread. An IOC official raised the prospect of cancelling the Tokyo Olympics (due to begin in late July).
Apart from the coronavirus news we had GDP-input data from Australia. Q4 construction data was a big miss (see bullets above) and is indicative of a weaker than expected economy even prior to what will be an even worse quarter in Q1. AUD/USD tracked a narrow range, as did NZD/USD.
Narrow ranges also elsewhere.
The Nikkei 225 bounced from its early session low, but does not look healthy at all.
