Forex news for Asia trading on Tuesday 3 August 2021
- China equity markets - just when you thought it was safe to get back in the water, state media likens online gaming to opium
- Japan says the COVID-19 hospital bed situation has become severe
- AUD/NZD lower ahead of the RBA policy announcement later today
- Japan moving some coronavirus patients out of hospital to make room for more severe cases
- Moody's say Asia-Pacific economies rebounding but deep economic scars holding some back
- Main focus for AUD still to come - RBA announcement due at 2.30pn Sydney time, 0430GMT
- Australia - housing finance data for June
- Australia Building Approvals for June -6.7% m/m (expected -4.5%)
- PBOC sets USD/ CNY central rate at 6.4610 (vs. yesterday at 6.4660)
- Australia NSW new COVID-19 cases 199
- A Crypto ICYMI - Major Ethereum update scheduled for August 4
- Here's what it looks like when a central banker puts his ego aside for a moment
- Container shipping giant Maersk lifts its earnings outlook - freight rates high & rising
- US said to have asked 24 Russian diplomats to leave by September 3 - visa expiry
- Japan data - Tokyo CPI -0.1% y/y, prior was 0.0%
- Australia weekly ANZ-Roy Morgan Consumer Confidence: 101.8 (vs. prior 100.7)
- Australian airline Qantas is to lay off 2,500 staff
- South Korea June Core CPI in July 1.2% y/y (vs. 1.2% also in June)
- Australia's COVID-19 vaccination rollout slowly, slowly moves forward - Pfizer for 30-39 yr olds in Canberra available from today
- TD says the PBOC is likely ease monetary policy further soon
- ICYMI - Fed's Waller outlines how a taper announcement could come in September (ps. Goldman Sachs says No)
- New Zealand PM Ardern reports she is ill, taking a COVID-19 test
- NZD traders - heads up for the GDT dairy auction coming up Tuesday 3 August 2021
- RBNZ will soon be tightening mortgage lending standards
- Trade ideas thread - Tuesday 03 August 2021
- ICYMI - Fed's Waller concedes a tapering announcement could come in September
The Australian dollar declined against the New Zealand dollar ahead of the day's Reserve Bank of Australia policy announcement (yet to come, due at 0430GMT). AUD/USD has been fairly stable but NZD/USD has risen. The Reserve Bank of New Zealand announced it'd be 'consulting' on tighter macroprudentil rules to try to calm house price rises. By 'consult' you can be sure these are on the way, it appears the start date will be October 1 (see bullets above).
The RBA is expected to reverse (a temporary delay) its previously announced decision to taper its bond-buying QE program given the economic damage being done by the fresh waves of coronavirus and subsequent widespread lockdowns. Some in the market are even expecting a (temporary) increase in the QE program.
Also on the move today have been Chinese stocks, especially those of tech firms related to online gaming - Chinese state media likened online gaming to opium ... related shares slumped and the wider indexes are down also (see bullets above).
USD/CAD rose as oil dribbled just a little lower after showing some early gain. The range has been not large.
In Japan authorities announced some hard decisions on how to ration hospital beds as severe COVID-19 cases rise and 'milder' cases are sent for 'home care'. This is not good news for the country as it grapples with a seemingly impossible to counter rise in cases. Its a race to get vaccinations done, but its not being won at the moment.
Reserve Bank of Australia due at 0430GMT:
- AUD to come under selling pressure if the RBA announces today that it delays tapering
- RBA monetary policy meeting Tuesday 03 August 2021 - preview
- RBA monetary policy meeting Tuesday 3 August 2021 - preview (This could be a big one)
- RBA monetary policy meeting Tuesday 3 August 2021 - preview
- RBA monetary policy meeting Tuesday 3 August 2021 - preview
AUD/NZD ahead of the RBA announcement:
