Forex news for Asia trading on Tuesday 27 July 2021
- Australian coal exports at Newcastle are picking up again after multiple disruptions
- Taiwan chip-maker TSMC (world's largest contract chipmaker) plans substantial expansion of production
- Japan services PPI rose for a fourth consecutive month - recap
- China Industrial Profits for June +20% y/y (prior +36.40%)
- PBOC sets USD/ CNY central rate at 6.4734 (vs. yesterday at 6.4763)
- Australia's largest population state (Sydney the capital) reports another record high new cases
- Australia 2nd biggest population state to ease some lockdown restrictions from midnight local
- MUFG on the AUD / NZD divergence
- Just waking up? Bitcoin smashed lower on Amazon denying it'll be accepting Bitcoin anytime soon
- China's Evergrande has cancelled its special dividend payment - have a guess why
- AUD - lockdowns are now placing Australia's recession recovery at risk
- Japan data - Services PPI for June +1.4% y/y (vs. +1.3% expected)
- Australia weekly consumer confidence: 100.7 (prior 104.3)
- South Korea economic growth +0.7% q/q in Q2
- US Fed's FOMC meeting begins today. Have members seen the $200 french fries?
- Federal Reserve FOMC preview (quick one, spoiler is to expect very little)
- RBA Dep Gov Debelle is speaking Tuesday (evening Sydney time) on FX
- Trade ideas thread - Tuesday 27 July 2021
- Bitcoin selloff takes it to lows not seen since ... earlier today
- Japan - reports of a M4.5 Earthquake off the coast of Fukushima Prefecture
- BTC losing a little ground - reports that Amazon will not be accepting Bitcoin this year
Major forex rates were subdued today, trading in very small ranges and there is little net change from late US levels. Watching the Olympics seems to be on many agendas, especially while awaiting the Federal Reserve's Federal Open Market Committee statement and Powell's press conference on Wednesday afternoon (US time).
Across the board the yen was the winner, with USD/JPY dropping 20 or so points to lows circa 110.20.
Meanwhile crypto was much more active. Bloomberg reported on an Amazon denial the firm would be accepting Bitcoin payment this year or next, and not developing their own currency either. BTC/USD had hit highs circa US$40,500 (just above) but the Amazon headlines saw it slump to under $38K and subsequently to under $37K. It managed to stumble sideways around that level but as I post new session lows are being made towards $36,700 (I am struggling to keep up ... its under $36,500).
Stocks in HK and China are heavy. Chinese real estate stocks were particularly hit.
On the geo-political front North and South Korea have re-established communication. Otherwise news flow has been light, with only minor-league data flow also.
