Forex news for Asia trading for Tuesday 27 April 2021
- Preliminary estimates of month-end FX hedge rebalancing flows point to more than usual USD selling
- China has halted work on 2 high-speed rail projects - concerned over local govt debt
- Japan to set up mass vaccination centres in Tokyo and surrounding prefectures
- China will launch a series of campaigns in May to boost spending
- Vale (iron ore producers) say they expect supply to increase, demand lower
- China Industrial Profits data for March: +92.3% y/y (prior +20.1% y/y)
- Yen being sold on the back of Japan coronavirus cases climbing & subsequent SOE
- PBOC sets USD/ CNY central rate at 6.4924 (vs. yesterday at 6.4913)
- Volkswagen is halting some production on chip shortage
- Moody's says it expects Australian mortgage delinquency rates higher
- Toyota has bought Lyft's self-driving tech unit
- What it would take from this week's FOMC to give support to the US dollar
- ANZ Roy Morgan Australian Consumer Confidence: 112.4 (prior 114.0)
- Coronavirus - US Chamber of Commerce official sees risk that India could be a drag on the global economy
- Musk says he has not sold any of his Bitcoin
- BOJ monetary policy announcement due Tuesday 27 April 2021 - preview
- South Korea Q1 GDP +1.6% q/q and +1.8% y/y, both beat estimates
- US Senator Manchin wants Biden's infrastructure bill split in 2 to increase the chance of passing
- EUR/USD support and resistance levels ahead
- Bitcoin getting a boost from Tesla comments "a lot of reasons to be optimistic"
- Federal Reserve FOMC policy meeting this week - preview
- UK to propose COVID-19 vaccination 'passports' for international travel at the G7 meeting
- Trade ideas thread - Tuesday 27 April 2021
- Tesla had a US$1.2 billion "outflow" on Bitcoin in Q1 (ps. "outflow" is the new "loss", right?)
- Tesla Q1 revenue miss, $10.39bn vs 10.41 est. EPS solid beat 93c vs. 80c est
It was a day of minor movement only in major FX, characterised by across the board US dollar strength (small only). News and data flow were light only. NZD was the biggest loser against the better bid USD but, as referred to already, the magnitude of the move was small. There was no specific news out of New Zealand of impact. At the other end of the spectrum CAD has lost some ground but its the best against the dollar for the session; oil is steady.
Gold has been notably soft, down more than $5.
BTC was supported by Musk and Tesla - the firm said it did sell some of the crypto (in its Q1 earnings call) but only as 'proof of concept' the coin could be used in place of cash. You can make your own mind up that, but there you go. It has certainly paid a better 'interest rate' so far this year!
As I post we are awaiting the Bank of Japan policy statement.
Regional equities:
Japan's Nikkei -0.3%, Topix -0.5%
China's Shanghai Composite -0.47%
Hong Kong's Hang Seng -0.22%
Australia's S&P/ASX 200 -0.41%
