Forex news for Asia trading Monday 3 August 2020
- ANZ reiterate their higher gold price forecast - backdrop remains highly conducive
- EUR/USD to get as high as 1.30 before finding a top
- China Caixin/Markit manufacturing PMI for July: 52.8 (expected 51.2)
- Trump to give TikTok's Chinese owner 45 days to reach deal to sell
- Australia - ANZ job ads for July +16.7% m/m (prior +42.0%)
- PBOC sets USD/ CNY reference rate for today at 6.9980 (vs. Friday at 6.9848)
- FX option expiries for Monday August 03 at the 10am NY cut
- Japan's final manufacturing PMI for July 45.2 (flash was 42.6)
- 4 reasons market vaccine optimism is misplaced. Plenty of downside risk for stocks.
- Australia CoreLogic house prices for July: -0.8% m/m (prior -0.8%)
- Japan final Q1 GDP -0.6% q/q
- Lighthizer to meet Truss on Monday and Tuesday for UK and US trade talks
- BoA quants see more US dollar weakness - follow this trend, don't fade it
- JP Morgan see further US dollar weakness ahead
- Australia - CBA/Markit Manufacturing PMI for July (final): 54.0
- Trade ideas thread - Monday 3 August 2020
- German Minister of State for Europe Roth says there will be “no business as usual” between EU & China
- Australia - Manufacturing PMI for July: 53.5 (prior 51.5)
- Fox is reporting Trump's TikTok ban will be announced on Monday. Or Tuesday.
- (Japanese retail group) 7-Eleven parent to buy US convenience store Speedway for $19bn
- Fed's Kashkari spoke over the weekend - suggests 4- 6 week shutdown, says Congress can spend big
- AUD traders note - its Sydney bank holiday Monday 3 August 2020
- Australian Treasurer Frydenberg says latest Melbourne lockdown to be a significant economic hit
- China's Global Times says "New cold war will not stop US decline"
- Negotiations on support for US unemployed will resume on Monday
- UK coronavirus - UK PM Johnson has ordered “nuclear” plans to prevent another nationwide lockdown
- US to widen action against Chinese tech groups beyond TikTok
- UK coronavirus - Major incident declared in Manchester
- Monday morning open levels - indicative forex prices - 3 August 2020
- Parts of Australia shift to stage-4 lockdown
- GBPUSDs 10 day up streak broken. Pair gives up gains.
- USA credit rating outlook revised to negative from stable by Fitch
USD/JPY strengthened 50 points to above 106.40 in morning Asia trade, the move higher occurring over the course of only about 30 minutes before slowly retracing the whole move over the following hours. There were a number of factors involved including:
- follow through buying from Friday's huge move up lows under 104.20 with a round of stops finally taken out above 106.10
- news of a M&A move out of Japan, Seven Eleven's parent company to buy out a US convenience store/gas station operation
Other currencies, too, followed through on Friday moves with a higher USD against EUR, AUD, NZD, GBP and again, a subsequent unwind of the Asia morning move to leave them all not a lot changed on the session (with some variance by currency of course).
Further US-China tensions were evident in weekend remarks from US Sec State Pompeo who said in a TV interview that action would be taken against Chinese companies, not just TikTok. News came out during the session here that TikTok parent ByteDance has been given 45 days to negotiate a deal to sell the app to, at this stage at least, Microsoft.
Coronavirus news centred on harsher lockdown restrictions announced in UK citiy of Manchester and Australian city of Melbourne. There will be further restrictions announced for Melbourne in the next couple of hours.
Late Friday in the US Fitch affirmed the US rating but downgraded the outlook for the country from stable to negative.
