Forex news for Asia trading Wednesday 29 January 2020
Coronavirus news headlines:
- 11 Wuhan residents traveling back from abroad were found infected with the coronavirus
- Coronavirus - Bank in China cuts interest rate for small companies in Hubei province
- Coronavirus: Australian scientists first to recreate virus outside China
- Coronavirus - Starbucks says it has temporarily closed over half its locations in mainland China
- CBA on an impact of the coronavirus on Australia (not a positive impact)
- Warning on the potential for a recession due to the coronavirus - a critical 'cushion' diminshed
- China NHC says total number of suspected coronavirus cases is 9,239
- Coronavirus updated figures: China death toll 132. Total number of cases now 5,974
- Coronavirus - More on the potential for the US to halt flights inbound from China. Not happening.
- Coronavirus - The White House reportedly tells airlines it may suspend US-China flights
- Check this out to put the coronavirus impact into perspective
- China's Hubei province has reported another 840 new confirmed coronavirus cases
Other:
- Earthquake registered in North Korea - probably not from a nuke test today
- AUD slow move higher. RBA rate cut expectations have been pared back, but not by everyone.
- Recap of the BOJ summary earlier - 'Japanification' talk may lead to BOJ policy review
- More responses to the Australian CPI data earlier today (more delays to the RBA rate cut)
- Responses to the Australian CPI coming in - analysts saying RBA will delay next rate cut
- NYT profile of Fed's Powell, who "plays a leading role in the soap opera that is President Trump's Washington"
- FX option expiries for Wednesday January 29 at the 10am NY cut
- Australia - huge infrastructure project in tatters
- Australia Q4 2019 inflation: Headline 0.7% q/q (expected 0.6%)
- Date set for RBA Governor Lowe to next appear in parliament - February 7
- BOJ Jan meeting 'summary' - coordinating with government fiscal policy
- Australia - Westpac's leading indicator for December +0.05% (vs prior -0.02%)
- GBP - several red flags for longs
- For the US politics folks - McConnell Says GOP don't currently have enough votes to block impeachment witnesses
- NZ finmin Robertson says the 12bn NZD infrastructure spend will boost the economy and jobs
- Another Cayman Islands earthquake, this time magnitude 6.5 (aftershock)
- New Zealand 12bn NZD infrastructure spending
- Trade ideas thread - Wednesday 29 January 2020
- RBNZ Hawkesby speaks on the impact of the global economy and its effects on New Zealand
- Private oil data shows a draw (vs. build expected) in crude oil inventory
The Australian dollar was a mover here during Asia, albeit in only a small 20 or so point range. While there were new cases of coronavirus both confirmed and suspected from China today the confirmed cases added today were less than those added yesterday, which gave some hope that an end is in sight for the outbreak. We will see how that goes. Data from Australia today was also on the supportive side for the AUD, with CPI coming in at a small higher than expected for the headline q/q and the trimmed mean y/y. A number of banks cancelled their forecast for a Reserve Bank of Australia interest rate cut on February 4, although it should be noted some remained unchanged on this forecast. AUD/USD moved, at one stage, just over 0.6775 and its not too far under as I am posting.
NZD/USD also gained earlier in the session. There was an announcement of a fiscal boost from the NZ government but when it sunk in that this had already been announced weeks ago the NZD, too, sunk back. Its ending the session here just a few tics under where it began.
EUR/USD is, too, off its earlier high in a small range. USD/JPY is barely changed, USD/CHF has added a few tics. Cable is little net changed.
Oil inventory data showed a draw (a build was the expected) which supported the oil price. CAD has not done much, its near its highs it hit against the USD during US Tuesday trade.
Gold is a few dollars lower.
