Forex news for Asia trading Monday 30 March 2020
- More on Japan's mooted stimulus - LDP said to be considering 100,00 yen cash handout
- NZ PM Ardern says NZ & world borders will probably remain closed until vaccine is available
- Estimates of the real death toll in China from the coronavirus - UK say multiply by up to 40
- US FDA issues limited emergency use authorization for two drugs usually used to treat malaria
- PBOC rate cut: 7 day reverse repo rate to 2.2% from 2.4%
- China's Commerce Ministry says around 80% of restaurants are open for business
- China President Xi says should actively resume operation and production amid virus control
- RBNZ Governor Orr says NZ financial system is resilient
- Goldman Sachs warns again on USD intervention risks
- PBOC sets USD/ CNY reference rate for today at 7.0477 (vs. yesterday at 7.0427)
- FX option expiries for Monday March 30 at the 10am NY cut
- An ICYMI - US administration plan to start buying oil to top up strategic reserve halted
- A couple of bank analyst notes on oil - one tipping WTI to $10
- Coronavirus - Full lockdown in Moscow, four hours notice given
- Singapore's central bank reduces slope of currency band to zero
- UK - Intensive care for coronavirus limited to those “reasonably certain” to survive
- Japan to extend its entry ban: US, China, most of Europe, South Korea
- Westpac on the NZ economy, see a huge fall for Q2 GDP, jobless rate to 9%
- US President Trump no longer pushing the US economy to reopen by Easter
- US President Trump wants a tax break for firms sending employees for a meal at a restaurant
- At least eight strains of the coronavirus are making their way around the globe
- More on the changes Australia's foreign investment rules
- WSJ on "promising drug combination" to treat coronavirus, and the "new data supporting this treatment"
- Caixin (Chinese media) highlight 100 million jobs at risk in coronavirus-slowed economy
- Coronavirus - Chief financial officer of Jefferies Group dies
- If you are hearing about the nanomaterial cure for coronavirus, check this out
- Trade ideas thread - Monday 30 March 2020
- Australian Treasurer Frydenberg flags an announcement of support for employers and employees to come later today
- RBNZ's Hawkesby says Bank continues to monitor market developments very closely, stands ready to act further
- Monday morning open levels - indicative forex prices - 16 March 2020
Weekend:
- Italy death toll rises by 756 to 10,779 on Sunday
- NY death toll up to 965 from 728 on Saturday
- Pipeline operators asking oil producers to reduce output, growing glut is overwhelming storage capacity
- US President Trump says now there will be no quarantine on New York, New Jersey, Connecticut
- Coronavirus - Japan's PM Abe on Saturday promises unprecedented economic stimulus
- North Korea appears to have fired another missile - has not landed in Japan's EEZ
- FT: Global petrol demand set to drop as much as 50% in some key markets
- OPEC presidency urged an emergency meeting on collapsing prices, members said no.
- Coronavirus - Russia will temporarily shut all its borders from 30 March
- Fitch cuts it rating for the UK with a negative watch - “material downside risk”
- Italy reports 5914 new coronavirus cases vs 5959 Friday
- New York reports 52,318 coronavirus cases vs 44,635 yesterday
- I'm coming around to the idea that the only useful coronavirus number is deaths
- It was all about the weak US dollar last week
Yen was a big gainer during the Monday session, with USD/JPY to lows under 107.20 at one stage. Oil and stocks were heavy also in a move away from risk to kick off the week.
There was plenty of news, especially over the weekend (headlines and links in the bullets above), notably the expected downgrade of the UK (Fitch) and signs of continued determination from Saudi Arabia not to cut back on their big production boost that has weighed on the oil price so dramatically.
The PBOC cut the interest rate payable on 7 day reverse repo agreements today - citing domestic economic considerations and encouraging back to work moves.
Also of note was US President Trump abandoning his idea to get the US economy reopenined in time for Easter. He now places a time frame on reopening much further out, saying that he expects the coronavirus crisis to be still increasing into Easter (peaking around then). Trump is extending the government guidelines (eg. social distancing measures) on dealing with virus outbreak to April 30.
EUR and GBP also lost ground on the session (vs. USD). USD/CHF was lower with USD/JPY but not to the same extent at all. AUD and NZD are both a little lower on the session.
Regional equities as I post
- Nikkei: -3.02%
- Hang Seng: -1.31%
- Shanghai: -1.59%
- ASX: +3.21% (not a typo)
