Forex news for Asia trading on Tuesday 26 October 2021
- New Zealand data due Wednesday 27 October - business confidence and activity
- Kiwibank has revised its rate-hike forecast for the RBNZ to 2% in November (2022)
- Australian Q3 inflation data due Wednesday 27 October 2021 - preview
- PBOC sets USD/ CNY central rate at 6.3890 (vs. estimate at 6.3875)
- China's vice-premier Liu He spoke with US Treas Sec Yellen
- China's state planner says working to stabilise the price of coal over the longer term
- Elon Musk tweets seeing strong inflationary pressure in short term
- China power shortages - fear of global car production halt within weeks
- Indicator of Australian Business Confidence +10.2% in October
- Japan PPI for September 0.9% y/y (vs. expected 1%, prior 1%)
- More on South Korea is to temporarily cut fuel taxes (from November 12)
- South Korean Q3 economic growth slowed - weaker domestic economy
- ICYMI - Mastercard and crypto firm Bakkt have partnered to enable cryptocurrency card payments
- Goldman Sachs wary of a further rally in USD/JPY beyond 116
- Australia weekly consumer sentiment 106.8 (previous week 107.0)
- ICYMI - Bundesbank says German economic growth to slow significantly in Q4
- Past Fed Chair Greenspan sees threat of sustained inflation above 2% target
- US securities regulator sees path ahead to rein in stablecoins
- ICYMI - China has a 10-point plan to address economic risks, power risks ... and more
- Trade ideas thread - Tuesday 26 October 2021
It was a day of not a lot of notable news nor data. The Australian dollar chopped around while overall gaining ground while USD/JPY was a bit more of a steady move upwards. Neither of the ranges for these two pairs was overly large, but on a session so far where nothing much has been happening in the majors they were notable. Put them together and the move for AUD/JPY is better.
The Australian dollar did appear to be pushed around a little by the moves in iron ore futures in China (futures on the Dalian exchange), which opened higher but slipped into negative, roughly corresponding with AUD/USD high and then its dip back towards the middle of its range. Some of you may be thinking correlation is not causation, rightly so, but apart from the iron ore moves all I can suggest is 'more buyers than sellers' (which'll annoy a whole other bunch of folks ;-). AUD/NZD rose on the session and with Australian inflation data due tomorrow (preview post above) may suggest a degree of further unwinding on this cross ahead of potentially higher CPI from Australia and perhaps an RBA rethink on its persistent 2024 guidance. I'm not holding my breath on this.
USD/JPY is making a fresh high for the session as I prepare this post, nudging above 113.90. Yen looks to be weighed on ahead of Japan's election at the end of this month. Elon Musk went as far as to tweet out his inflation view (see bullets above) for the US - higher. US inflation, and corresponding moves in US rates, are underpinning USD/JPY (this is not news to anyone).