Forex news for Asia trading Tuesday 27 August 2019
- Goldman Sachs and BoA/ML cut their forecasts for the yuan
- RBA dep gov Debelle says floor for rates is likely around zero to 0.5%
- About 3,000 pilots from 12 airlines have joined a class action against Boeing re 737 MAX
- Norway's central bank dep gov to speak on Tuesday - of interest to US equity traders (yes, really)
- RBA's Debelle says threats to trade pose a significant risk
- HK CEO Carrie Lam says government has zero tolerance for violent protest
- Will next Monday morning in Asia be as wild as yesterday? But this time for EUR?
- Japan finance minister Aso says won't comment on currency (then comments on currency)
- China Stats Bureau on the profits data - economy still faces downward pressure
- China Industrial profits for July: +2.6% y/y (prior -3.1%)
- Citi on the downside level to watch in USD/JPY (to trigger a move below 100)
- PBOC sets USD/ CNY reference rate for today at 7.0810 (vs. yesterday at 7.0570)
- FX option expiries for Tuesday August 27 at the 10am NY cut
- The phasing out of cash (like Australia wants to do) is an IMF plot (put your tin hats on before reading this)
- Japan PPI Services for July: 0.5% y/y (est. 0.6% & prior 0.7%)
- Australia - ANZ Roy Morgan Weekly Consumer Confidence: 114.1 (prior 112.8)
- US Senators warns not to invest in Chinese companies
- Italian media say that the 2020 budget remains a sticking point in coalition talks
- Here's a gold forecast: $1,600 within the next 3 months
- Brexit fireworks should intensify from next week
- PBOC governor called on major financial institutions to speed up issuing new loans
- Greece is lifting all controls on capital movement after four years of restrictions
- RBNZ Gov Orr interview - says 50-point cut was driven largely by domestic concerns
- Australian PM Morrison says ready for a trade deal with Britain within a year of Brexit
- ECB's Weidmann (ICYMI) - "no reason to roll out a large-scale programme to stimulate economic activity"
- Adviser to UK PM Johnson to discuss alternatives to May's Brexit plan with the EU
- Boris Johnson refuses to rule out suspending Parliament to push through no-deal Brexit
- Trade ideas thread - Tuesday 27 August 2019
- AUD traders - there is a barrage of data on the way this week
USD/JPY drifted lower for the session here towards 105.70, dragging yen crosses down a little with it. News flow was light.
We did get some data today, most notably out of China where industrial profits bounced back somewhat in July. Also from China today we had the People's Bank of China allowing a further slide for onshore yuan, and again not as much as expected, with USD/CNY set above 7.08 (traders took USD/CNY above 7.15 in trade following the mid-rate setting).
EUR and cable have been stuck in their own small ranges, as has USD/CHF. USD/CAD continued its slide, down another 10 points only though. It was similar for AUD/USD and NZD/USD, both drifting a little lower. A weaker yuan is not a boost for these currencies as China is a major export market.
