Forex news for Asia trading on Monday 27 September 2021
- Mid-week central bank heads speeches bonanza - Powell, Lagarde, Bailey, Kuroda
- Here's what is coming up this week for troubled China property giant Evergrande.
- Evergrande's electric vehicle unit extends losses, down another 20%
- Fitch says Evergrande's impact on rated construction firms is manageable
- PBOC sets USD/ CNY reference rate for today at 6.4695 (vs. estimate at 6.4696)
- Vitol CEO says global oil demand is still down on 2019 level
- Federal Reserve Chair Powell is speaking again this week - Testimony Tuesday
- US President Biden says again he'll levy higher taxes on those earning > $400,000
- ICYMI - China and Canada did a prisoner swap over the weekend. Huawei's Meng released.
- Japan PPI Services for August +1.0% y/y (expected +1.2%)
- US House Speaker Pelosi set Thursday for the infrastructure bill vote
- Australia COVID-19 - NSW state briefing business on "Freedom Day": October 11
- Japanese media reports all COVID-19 states of emergency will be removed this week
- Goldman Sachs hike its oil price forecast from $80 to $90 (year-end Brent)
- US House Speaker Pelosi says an infrastructure bill vote on Monday unlikely
- Elon Musk weekend comments on Tesla, praises China
- US National Hurricane Center warns on "ferocious" Sam
- German election outcome still uncertain - could be weeks of wrangling ahead
- The UK petrol (gasoline) shortage - a shortage of qualified delivery drivers
- Trade ideas thread - Monday 27 September 2021
- Australian PM Morrison says states must reopen borders once vaccination targets hit (& why this means nothing)
- The German election result is line ball
- Monday morning open levels - indicative forex prices - 27 September 2021
Weekend:
- Tight German election results point to a long night but SPD leads
- Action packed central bank week as Fed detail taper timetable
- China's PBOC inject funds on Sunday. Brings the total funds added for the week to the highest since mid-January.
- Bank of England responds to rising inflation
A little local optimism and an apparent slight warming in the chilly US-China relationship was enough for the Australian dollar to steadily tick higher through much of the session. The leader of Australia's largest population state confirmed October 11 for a substantial path out of restrictions (ForexLive had this date posted in the hours preceding the confirmation giving us all a head start:
)
Late on Friday and hitting the news over the weekend was the news of a prisoner swap between Canada and China as the US reached an agreement with Huawei CFO (and daughter of the company's founder) Meng Wanzhou. Meng was allowed to leave her Vancouver mansion where she had been confined and flew back to China. Meanwhile, Canadians Michael Kovrig and Michael Spavor were taken out of their China jail cells and flown back to Canada. While relations between the US and China are still strained this is a positive sign. AUD, as a China proxy trade, seemed to like the news.
Oil traded higher following its Friday gains, benefitting CAD.
The People's Bank of China injected funds into the banking system again over the weekend and Monday. Its not unusual for liquidity to be added ahead of major holidays in China (national holidays begin from Thursday this week) and Evergrande ructions are an added impetus for inputting more cash into the system.
Speaking of the weekend, Bitcoin recovered much of its Friday losses over Saturday and Sunday and ticked a little higher on Monday Asia time as I post.
The election in Germany has not produced a clear winner, coalition negotiations are expected to stretch out into the weeks, if not month or more, ahead (see bullets above). Preliminary results have the SPD ahead of incumbent CDU/CSU in number of seats won but of course neither is close to a majority. As I post, in the 730 seat Buindestag:
- SPD have taken seats 205
- CDU/CSU seats 194
See the bolded German election post post above for a helpful summary.
Gold has had a $10+ rally through the session.
AUD/USD:
