Forex news for Asia trading Friday 30 August 2019
- More on the lower AUD - its the USD
- "AUD now sits on the cheap side of fair value"
- Chinese soldiers stationed in Hong Kong will have “no reason to sit on their hands” if the situation in the city worsens
- RBA confirms its inflation target
- Australia private sector credit for July 0.2% m/m (expected %)
- Australia Building permits for July: -9.7% m/m (expected 0.0%)
- PBOC sets USD/ CNY reference rate for Friday at 7.0879 (vs. yesterday at 7.0858)
- BOJ reduces its purchases of JGBs in the 5 - 10 year window
- South Korea's central bank has left its key benchmark rate unchanged
- Hong Kong - protesters arrested
- Japan Industrial production for July (preliminary) 0.7% y/y (expected -0.6%)
- Japan Retail Sales for July -2.0% y/y (vs. expected -0.7%)
- Tokyo inflation data for August. Headline CPI 0.6% y/y (expected 0.6%)
- Japan - Unemployment rate for July: 2.2% (expected 2.3%)
- UK data - GfK Consumer Confidence for August: -14 (expected -12)
- UK data - Lloyds Business barometer for August 1 (prior 13)
- New Zealand Building permits for July: -1.3% m/m (prior -3.9%)
- S&P ratings cut for Argentina
- US-China trade war is getting much worse. How much worse? Check out this pic.
- ICYMI - EU extends tariffs on Chinese bicycles
- New Zealand Consumer Confidence for August: +1.5% m/m (prior -5.1%)
- Imports from the US that appear more than once on China's tariff hike lists will be subject to the combined tariff rates
- Trade ideas thread - Friday 30 August 2019
- Where to buy GBP (but first, where to watch for a 5 big figure drop)
A barrage of data hit today during the Asian time zone with indications on CPI and economic performance from Japan, building permits from NZ and Australia, and more - all in the bullets above.
There was some forex movement, with a generally stronger USD: EUR, AUD, NZD, CAD, CHF all lower while GBP and yen have not done much.
AUD and NZD both saw weaker building approvals data reported, AUD especially, but while these did not provide positive sentiment its probably better to attribute the weakness in the two to the USD. CAD also lost ground.
USD/JPY remained in not much more than a 10 point range and net has moved little on the session. Data from Japan was mixed, better IP but a poor showing for retail sales. CPI, well, have a guess, still way below target.
The People's Bank of China edged the onshore yuan mid-rate a touch weaker. Its a familiar story here also, weaker yuan but by not nearly as much as was expected.
In Hong Kong we had news of further arrests of leading protesters. State media in China also flagged that mainland troops stationed in HK are not there for symbolic purposes and are in a position to take action if deemed necessary. Tensions continue.
Still to come:
- FX option expiries for Friday August 30 at the 10am NY cut
- Heads up for weekend data due from China - official PMIs for August
- AUD traders - heads up for RBA meeting on the US holiday
- Bank of Canada meet next week - expectations are for on hold
- A note for your diary - Fed Chair Powell to speak next week
