Forex news for Asia trading Wednesday 26 February 2020
- S&P affirm NZ ratings and positive outlook - say virus outbreak to slow growth
- Standard Chartered says coronavirus consequences unpredictable
- Japan's Kanagawa Prefecture has a method to detect the coronavirus significantly quicker
- US coronavirus 'task force' meeting Thursday 1930GMT
- Suspected coronavirus infection reported in Vienna - OPEC monitoring ahead of meeting there March 5-6
- Scotia says evidence points to Swiss National Bank intervening in CHF
- ANZ is not upbeat on Australian capex outlook - bleak outside mining sector
- China's foreign ministry warns the US not to harass, restrict Chinese news agencies in US
- More from Canada - why to expect a Q1 hit to growth (No, not coronavirus). Maybe even a BoC rate cut.
- Canada PM Trudeau says one step closer to ratifying the new NAFTA (USMCA)
- Australian Q4 GDP expected to show a weak economy heading into the Q1 turmoil
- More on NZ fin min coronavirus comments - "will have a serious impact on the New Zealand economy"
- Exante - COVID-19 is in the early stages of a pandemic, China numbers not believable
- FX option expiries for Thursday February 27 at the 10am NY cut
- BOJ's Kataoka: Bank of Japan is ready to ease further if needed
- Mainland China 433 new coronavirus cases and 29 new deaths
- Korean won all over the shop on surprise BoK decision then coronavirus acceleration
- PBOC sets USD/ CNY mid-point today at 7.0215
- Coronavirus - US urges reconsidering travel to South Korea
- South Korea confirms 334 more coronavirus cases, total 1595
- South Korea, U.S. decide to indefinitely postpone upcoming combined exercises over coronavirus concerns
- The US CDC confirms first case of coronavirus of unknown origin
- Korea's central bank leaves its benchmark rate unchanged (a cut was widely expected)
- Australia Q4 capex -2.8% q/q (vs. expected 0.5%)
- US President Trump says he disagrees with the Federal Reserve on interest rates
- Citi: reluctant to buy the dip in risk assets just yet
- Goldman Sachs is looking for more downside for US stocks
- US President Trump says the coronavirus will probably spread in the US
- Coronavirus - JP Morgan slash their global growth outlook
- A coronavirus case has been found in California - of unknown origin
- NZ finmin Robertson says New Zealand government and RBNZ have scope to respond is needed
- ICYMI: RBNZ’s Hawkesby says monetary policy not the right tool in response to coronavirus economic impact
- Ex-Fed head Yellen says its conceivable that the coronavirus could push the US into recession
- 7 people dead in multiple shooting in Milwaukee
- Goldman Sachs FX recommendation - long yen against CAD
- Trade ideas thread - Thursday 27 February 2020
- NZ data - January Trade balance at -349m NZD (expected -549m)
- Goldman Sachs jack up their forecast for gold to $US1800 (from $1600 previously)
- The coronavirus will be a pandemic, here are 8 things to do
Traders awaited US President Trump's press briefing on the coronavirus. There was nothing much of substance from it. In the midst of the press conference news hit that there was a confirmed case in California "of unknown origin". This, along with the nothingburger press conference spooked US equity futures trade, prompting an evening of losses on Globex trade.
News otherwise during the session on the virus was a quickening of infections in South Korea, but also some positive news out of Japan where a faster result test for the virus was announced. Details on this were thin, see bullet above.
Looking ahead, US Vice President Pence (announced as the head of the virus task force in the US) will chair a virus meeting from 2.30pm US time (1730GMT) on Thursday (27 February 2020). This might calm 'risk' heading in but given the situation the US faces (reported yesterday that
(that is, the US data in infections is not credible) there is plenty of bad news to come before it gets better.
Apart from coronavirus news ... US Presdient Trump once again berated the Fed for having interest rates too high. When he made the comment it prompted some USD weakness, and this has subsequently extended against yen and CHF. GBP, EUR also a little better bid for the session. Gold is up a few dollars also.
From Australia we got capex data for Q4 2019. This was a mixed bag, with the realised spend in Q4 disappointing but planned capex ahead a little brighter. A little, mining capex intentions a bright spot (from a deeply low base) while services capex intentions are suffering from the weak demand Australian economy. AUD/USD stabilised somewhat during the session, as has NZD/USD (see bullets above fro comments out of NZ today).
- As I post, Dow futures down 400 points.
- S&P500 down 1.5%
