Forex news for Asia trading Thursday 27 August 2020
- Bank Of Korea Gov Lee says Bank still has room to cut rates
- More US NBA news - Los Angeles Lakers and Los Angeles Clippers vote to boycott the rest of the playoffs
- Response to the Australian capex data released earlier: investment is being both delayed and cancelled
- US Hurricane Laura - on track to surpass Hurricane Katrina in 2005
- BOJ's Suzuki says benefits of monetary easing exceeding costs for now
- Australian Private Capital Expenditure (capex) for Q2 headline -5.9% (expected -8.2%)
- China July Industrial Profits: +19.6% y/y (prior +11.5%)
- NZ health minister says looking good on COVID-19, do not need zero cases to lift the lock down of Auckland
- RBA buying government bonds today
- PBOC sets USD/ CNY reference rate for today at 6.8903 (vs. yesterday at 6.9079)
- FX option expiries for Thursday August 27 at the 10am NY cut
- US - protests continue in Minneapolis Wednesday night. A death has stirred tension.
- South Korea central bank leaves its key rate at 0.5% as expected
- Here is the agenda for the Federal Reserve Jackson Hole symposium
- A team from the WHO investigating the origin of COVID-19 didn't bother to visit Wuhan
- More on Moderna's proposed COVID-19 vaccine - could be effective in high risk groups
- NZ stock exchange website is down for the third day in a row
- Coronavirus - Abbott launches a $5 Covid-19 test, 15 min turnaround. No lab required.
- Awaiting Fed Chair Powell speaking Thursday ... gold supportive?
- Reports that South Korea will announce an extended short-selling ban today
- ICYMI - Fed's George says not opposed to overshooting inflation target
- Australian state Victoria reports 130 new coronavirus cases
- NZ has allocated "hundreds of millions of dollars" towards Covid-19 vaccine
- AUD forecast to 0.80 (ICYMI)
- Silver - 'temporary breather' before move higher
- BOC Wilkins said overshooting inflation approach is worth considering
- US basketball player protests - All NBA playoff games today have been postponed
- US authorities now say Hurricane Laura winds speed could hit 150 miles per hour
- New confirmed COVID-19 cases in Italy hit their highest since May on Wednesday
- Trade ideas thread - Thursday 27 August 2020
- UK press says government officials discussing a London-NY travel bubble
Morning trade in Asia saw a move stronger for (most) currencies as the USD slipped a little further following its overnight losses. Currencies cracked to new highs compared with that overnight trade but most have retraced to be little changed on the session as I update.
Ranges have not been large.
There was a broad spread of news but given the ranges not of too much impact. Protests continued in Minneapolis, Hurricane Laura continued to strengthen in the Gulf, and the third evening of the Republican convention got underway. Of most note was the emergency use approval for Abbott's $5, 15 minute COVID-19 test, which may very well have the potential to hasten return towards a more normal life for many people, and with the economic benefits that will bring (see bullets above). Not going to happen overnight, of course. The news was greeted with a bit more of a bid for currencies, but, as I've said, subsequently unwound for most. Gold has fallen a few dollars on the session.
The data docket was light but we did get Australian capex data for Q2. Unsurprisingly actual, and planned, business investment was, and will be, scaled back. The headline was not as poor as expected though.
Stay tuned for the Federal Reserve symposium coming up, Fed Chair Powell will speak at 1310 GMT on Thursday.
