Forex news for Asia trading Friday 29 May 2020
- China says wants 'peaceful reunification' with Taiwan
- Japan finmin Aso says the country's fiscal situation will deteriorate even further
- NZ finmin Robertson says economy is opening up, improving
- Japan economy minister Nishimura says industrial production in severe condition
- China has extended its anti-dumping probe - US and Japan under the microscope
- Australia Private Sector Credit for April: 0.0% m/m (expected 0.6%)
- Potential for a lower USD/yuan is gaining
- PBOC sets USD/ CNY reference rate for today at 7.1316 (vs. yesterday at 7.1277)
- DB bearish kiwi against AUD
- Japan's auto production fell in April at its fastest since 2013
- Heads up for China data to be released over the weekend - official PMIs for May
- FX option expiries for Friday May 29 at the 10am NY cut
- Japan Retail sales for April -9.6% m/m (expected -6.9%)
- Japan industrial production (preliminary) April: -9.7% m/m (expected -5.7%)
- Japan unemployment rate for April 2.6% (expected was 2.7%)
- Japan - Tokyo inflation data for May - Tokyo area headline CPI: 0.4% y/y (expected 0.1%)
- UK seeks to create a 10 country alliance for alternative 5G supply instead of China
- UK data for May shows business confidence to its lowest since 2008 GFC
- South Korean industrial output in April fell at its sharpest since 2008
- Fed's Daly says US unemployment is astoundingly high
- US$380bn AUM fund says many global company dividends resilient, other to resume soon
- New Zealand consumer confidence rises for May 97.3 vs. 84.8 prior
- G20 says 36 of 77 eligible countries have applied for debt relief
- ICYMI - BoE's Saunders sees no recovery for the UK economy in the next 2 to 3 years
- AUD and equites (continued bias is to watch S&P for AUD direction)
- Trade ideas thread - Friday 29 May 2020
A round of data from Japan today but with nothing much out of the ordinary:
- low CPI (Tokyo are inflation a bit higher than expected though)
- weak retail
- weak industrial output
Despite all this the yen showed a little strength. USD/JPY dropped under its overnight lows, taking out a few stops sub 107.60. The fall fizzled out after 20 points, USD/JPY holding lows circa 107.40.
EUR also had a small higher move against the dollar. As I update it has fallen just short of its overnight high within a 15-odd point range.
It appears Asia is content to wait to hear what US President Trump has to say on China on Friday.
AUD and NZD maintained tight ranges also.
Apart from the data the news flow was light. We had comments out of China on reunification with Taiwan. Such sort of talk is not unusual but needs to be read in the context of more determined moves from the mainland on HK this week. Perhaps there is more to come on Taiwan? Again, we eagerly await Trump on Friday and if there is anything he thinks he can do. As yet I am still awaiting an idea the time Trump is expected to speak.
