Forex news for Asia trading Tuesday 3 September 2019
- New Zealand Finance Minister Grant Robertson says accepts monetary, fiscal policy must work together
- USD/yuan forecast to 7.23, and for yen to remain bid
- Australia new vehicle sales down 12.5% in August, new low for the year
- China says it is not the main source of fentanyl to the US
- Australia Retail Sales for July: -0.1% m/m (expected 0.2%)
- Australia BoP Current Account Balance for Q2: AUD 5.9bn (expected AUD 1.5bn)
- ANZ: "A 25bp rate cut from the FOMC at its September meeting looks a sure thing"
- PBOC sets USD/ CNY mid-point today at 7.0884 (vs. yesterday at 7.0883)
- Australia - ANZ Roy Morgan Weekly Consumer Confidence: 114.4 (prior 114.1)
- UK data shows consumers stockpiling food ahead of Brexit deadline
- UK BRC sales like-for-like for August: -0.5% y/y (expected 0.5%)
- ICYMI: Hong Kong leader Lam says the unrest has become a national security and sovereignty issue for China
- Japan PM Abe to reshuffle Cabinet next week
- North Korea denies it stole $2 billion through hacking banks and cryptocurrency exchanges
- ECB's Mersch pays out on 'treacherous' cryptocurrency
- Trade ideas thread - Tuesday 3 September 2019
- Brexit - here is reasoning for a lower GBP if a UK snap election is called
The headline is today's story indeed, a stronger US dollar almost from the get-go. EUR/USD dropped under its overnight lows, as did AUD/USD and NZD/USD (there was some news on AUD, I'll come back to that). Cable slid lower, while USD/CHF continued its climb back toward parity.
Yen and CAD put up a bit more of a struggle, with USD/CAD higher but not to its overnight highs. Pretty much ditto for the yen, USD/JPY managed above 106.35 but as I update has stalled there.
From Australia today we got some positive news for Q2 GDP (data due on Wednesday local time), with surging exports (oh, and a not quite so nice result for imports suffering, perhaps due to a softer economy) tipping the Balance of Payment Current Account to surplus for the first time in nearly ... wait for it ... 45 years. Exports are a continuing bright spot for the Australian economy. At the same time retail sales data for July were published, a first look at Q3 for this indicator. These showed a big miss. AUD/USD popped a little on the data but soon subsided again to fresh lows and well under 0.67 as I update. NZD/USD followed a similar pattern to the AUD.
Don't forget folks, RBA decision coming up at 0430GMT and then soon after that it'll be over to the UK for today's dose of Brexit.
- Another RBA preview (this time an as consensus on hold call)
- Another forecaster expecting an RBA rate cut today, Tuesday 3 September 2019
- OK, I found two banks forecasting an RBA rate cut today
- RBA seen cutting rates again ... "but not quite yet". And AUD forecast.
- What are markets pricing in ahead of the RBA?
- AUD - RBA meet Tuesday 3 September 2019 on monetary policy - preview
Still to come:
- FX option expiries for Tuesday September 03 at the 10am NY cut
- NZD traders - heads up for the GDT dairy auction coming up Tuesday