Forex news for Asia trading Wednesday 27 November 2019
The Australian dollar dropped after a narrow range sort of session on a change of forecast from Westpac:
- Westpac says RBA to cut cash rate to 0.25 by June 2020, QE to follow
- Westpac's call for two more RBA rate cuts then QE - and where to for the AUD
- AUD drops as news of QE expected from the RBA hits
And:
- GBP traders - heads up for much-watched UK election poll due Wednesday
- 3 new Australian free trade agreements approved
- Recap of the China's industrial profits data (showed a 9.9% fall y/y in October)
- China PMIs due this week (and next) - early indications are not promising
- ICYMI: FAA says again that Boeing’s 737 MAX not ready for certification
- More from BOJ's Sakurai: BOJ shouldn't rush into easing further given side effects
- BOJ Sakurai says will patiently continue with powerful monetary easing
- China data - Industrial Profits for October -9.9% y/y (prior -5.3%)
- Asia FX - analysts weigh in on US-China trade negotiations
- PBOC sets USD/ CNY reference rate for today at 7.0349 (vs. yesterday at 7.0344)
- FX option expiries for Wednesday November 27 at the 10am NY cut
- Australia Construction Work Done for Q3: -0.4% q/q (expected -1.0%)
- RBC says Australian economic growth to remain slow
- Poll shows Bank of Canada expected to be on hold next week
- US, Canada and Mexico to meet Wednesday on NAFTA
- S&P says major fiscal stimulus in Australia could place AAA rating under pressure
- Goldman Sachs says the US is likely to roll back some additional tariffs on China - recommends buying yuan
- JP Morgan is looking for a global rebound in 2020
- US unveils plan to shield telecoms networks from ‘foreign adversaries’ – but no explicit mention of Huawei or ZTE
- Trump says its him holding up the trade deal with China - its has "got to be good"
- RBNZ Gov. Orr remarks - nothing on the economy nor monetary policy (yet)
- New Zealand trade balance for October: NZD -1013m (expected NZD -1000m)
- Headline oil inventory data (private survey) shows a build
- Trade ideas thread - Wednesday 27 November 2019
- Goldman Sachs has been fined USD 1 million for not recording traders' phone calls
- EU's Barnier says he will prioritise a UK trade deal post-Brexit
AUD/USD had been barely moving on the day but from above 0.6790 it fell toward 0.6775. While not a big move it was a good-sized one compared with what was happening most elsewhere in FX.
The other item attracting the most interest today was the data from China, which showed industrial profits down for their largest drop since 2011, a huge -9.9% y/y for October (see bullets above). This should add to the calls for more stimulus from China. FX response was minimal. the again, it was minimal to everything on the day here.
EUR/USD has fallen away 15 or so points from its late US-time high while USD/JPY edged a wee bit higher. USD/CHF is a little higher also.
Cable is just a tad weaker on the session also. There is polling due from the UK on Wednesday evening to be aware of. If the parties move closer together it'll be a negative for GBP. Some enhanced possibility for a clear win would, on the other hand, be a positive.
