Forex news for Asia trading Tuesday 30 June 2020
- RBA's Debelle says monetary policy support likely for some time, rate hike years away
- Goldman Sachs says a national US mask mandate could potentially substitute for lockdowns
- Trump's role in the Russian bounties to kill US service personnel coming under greater scrutiny
- Japan is adding a further 18 countries to its entry ban from July 1
- Australia data, May private sector credit -0.1% m/m (expected 0.0%, prior 0.0%)
- Hong Kong national security law passed by Beijing, expected to become effective on July 1
- PBOC sets USD/ CNY reference rate for today at 7.0795 (vs. yesterday at 7.0808)
- FX option expiries for Tuesday June 30 at the 10am NY cut
- China official PMIs for June: Manufacturing 50.9 (vs. expected 50.4), Services 54.4 (exp. 53.5)
- NZ June business confidence (final): -34.4 (preliminary -33.0, prior -41.8)
- Citi have raised their forecast for the gold price
- Japan Industrial Production for May (preliminary) -8.4% m/m (expected -5.9%)
- Japan Unemployment rate for May: 2.9% (expected 2.8%)
- Australia weekly consumer confidence: 93 (prior 97.5)
- US coronavirus - More from LA County - to close beaches during the 4th of July holiday weekend
- US Treas Sec Mnuchin says the US is in a strong position to recover
- New Zealand economic 'activity index' -6.5z% y/y in May (prior -19%)
- US taxpayers can request a filing extension from July15 to October 15
- US coronavirus - Arizona has ordered bars, clubs, gyms to close again (for 30 days)
- Recap of San Fran Fed head Daly on the coronavirus economic impact - "afraid"
- RBNZ chief economist Ha says some sectors recovering, but big hole in activity
- Flu virus with 'pandemic potential' found in China (yes, another one)
- RBNZ chief economist Ha says risks to economy remain to the downside
- Gilead price for a treatment of COVID-19 drug remdesivir: US$2340 to $3120
- UK PM Johnson to announce 5bn GBP accelerated spending
- US coronavirus - Kansas announces state-wide mask mandate
- NZ finmin Robertson says New Zealand economy faces challenging times ahead
- US Commerce Sec Ross says US preferential treatment of Hong Kong is suspended
- Trade ideas thread - Tuesday 30 June 2020
- Coronavirus - LA County warn conditions deteriorating rapidly, virus spreading swiftly in the community
- US Sec State Pompeo to impose same restriction on defence exports to HK as it has on China
- Coronavirus - UK city of Leicester placed back into lockdown
- Fed's Powell says the path ahead is uncertain, hinges on virus
The bid for risk currencies began before the China PMI results but the better numbers added to the gains. Some of the details of the PMIs were not so strong but nevertheless the headlines were good enough.
Other data of note today:
- Australian monthly credit dropped for the first time since since June 2011
- Japanese industrial production tanked further in May
Earlier the session coronavirus news played out with further deterioration in the US and the reintroduction of lock down measures in some of the latest hot-spots (see bullets above). The BBC also reported on a potential new virus found in China, this time potential pig to human transmission. The UK is locking down Leicester due a local outbreak.
CAD was gainer late US/early Asia alongside the stronger AUD and NZD. GBP, EUR also up a touch on the session. A higher USD/JPY has helped pump up yen crosses on the day.
