Forex news for Asia trading on Thursday 30 September 2021

The US Senate will vote Thursday (local time) on a stopgap bill to keep the government funded through to December 3. Senate Leader Schumer has said he has an agreement to get the bill passed. If so it'd then head to the US House of Representatives where it should pass, and then, again if so, to US President Biden for signing.

The news added some positive sentiment to the session with currencies generally higher against the USD. Moves were not large, barely denting the massive rise for the USD Wednesday time - just a small retrace is all. Shut down may very well be avoided but Biden's legislative agenda is still unresolved.

In the data front we had Japanese industrial production data. This showed a bigger slump than was expected m/m, for the second consecutive month. The Japanese government revised its IP assessment, saying output is stalling. The semiconductor chip shortage continues to weigh, particularly impacting auto production.

A little later we had the first of the manufacturing PMIs from China for September. The Manufacturing PMI slipped into contraction for the first time since the darkest days for Chinese industry back in February 2020. The non-manufacturing PMI did improve though. In addition to chip shortages the NBS pointed to both demand and supply pressures including surging energy pricing and higher prices for other inputs.

Forty-five minutes after the official manufacturing PMI the privately surveyed Caixin-Markit manufacturing PMI for September was published. This came in at a small, and very welcome, expansion after the August contraction reading (see bullets above).

On the coronavirus front Australian state of Victoria recorded a 50% rise in new cases in one day, to 1400+ and a new high record for the state (by far). So far the State's government has not indicated any delay to reopening plans, vaccinations are the key. A further worsening of the outbreak from here will increase the probability of delays to reopening due to concerns over overwhelming the hospital system.

BTC rose for a solid gain:

Bitcoin rise price wrap 30 September 2021