Forex news for Asia trading for Wednesday 28 April 2021
- Australia's low, low inflation rate for Q1 - RBA will keep the cash rate at record lows for years
- US, UK NZ, Australia finance ministers held a call earlier today
- Canada reports first blood clot death following AstraZeneca vaccine
- AUD drop following below expectations CPI readings
- Australia inflation data, Q1 2021 Headline CPI 0.6% q/q (expected 0.9%)
- PBOC sets USD/ CNY mid-point today at 6.4853 (vs. yesterday at 6.4924)
- Another quick FOMC preview (decision due Wednesday 28 April 2021) ... links to other previews in this post
- Citi's bear market checklist - “not hard to find signs of excess in global equity markets right now"
- Westpac forecast the RBA will extend its QE and shift YCC to the November 24 bond
- Fitch Ratings warn of risks for Australian credit markets - stimulus withdrawal
- Morgan Stanley neutral on EUR, see risks skewed to the upside in the near term
- Japan Retail sales for March: +1.2% m/m (expected 0.6%)
- Federal Reserve FOMC meeting today, Wednesday 28 April 2021 - Goldman Sachs say no hint of tapering
- ADB forecasts an 8% China GDP this year (previous forecast was 7.7%)
- UK data - BRC Shop Price Index for April: -1.3% y/y (prior -2.4%)
- USD/CAD seen a sell on rallies, "rather than chasing it lower”
- Japan is assessing Moderna vaccine for use at mass vaccination sites
- More on Biden's tax plans - wants spending to be fully paid for ... ps. Biden speaks Wednesday evening US time
- UK holidaymakers allowed back into Spain from June
- Biden will omit his estate tax expansion from the upcoming economic plan
- Coinbase has further delayed the launch of Tether trading
- US Senator Warren wants the SEC to investigate insider trading in Emergent Biosolutions
- US Sec State Blinken says timing of Biden - Putin meeting being discussed with Russia
- Trade ideas thread - Wednesday 28 April 2021
- More from BoC Governor Macklem - bond purchases not guided by government needs
- NZD - RBNZ to provide Govt with advice on debt-to-income and interest-only mortgage restrictions
- Private oil survey data shows a larger than expected build in headline crude oil inventory
- BOC Gov Macklem optimistic on strong consumption growth as vaccination progress
The data focus for the session was Australian Q1 2021 CPI which came in under expectations on all three measures and at a record low for the 'core' trimmed mean indicator. Looking ahead the y/y measures will get a boost from base effects ion Q2 ... but, for today the response was to very weak inflation. The Australian dollar was marked lower while, on the bright side, local equities lifted higher.
Elsewhere in forex the USD was broadly a little better bid; EUR, NZD, CHF, GBP, yen have all lost a few points, as has gold.
Apart from the Aussie CPI the other data and news flows were light and not of much impact. Asia was not as quiet as it normally is pre-FOMC but it was not overly active. Note that Japan begins a week-long holiday Thursday (local time), i.e. tomorrow.
The People's Bank of China set the reference rate for the onshore yuan at its strongest since March 12 today.
BTC ticked higher.
Regional equities:
Japan's Nikkei +0.4%, Topix +0.4%
China's Shanghai Composite +0.1%
Hong Kong's Hang Seng +0.15%
Australia's S&P/ASX 200 +0.45%
