Forex news for Asia trading for Wednesday 31 March 2021
- Another preview look at the OPEC+ meeting on Thursday 1 April
- JP Morgan on OPEC+ ... existing output cuts to be maintained
- New lock down for a city in China after new coronavirus cases
- More China PMIs for March still to come (tomorrow and next week)
- PBOC sets USD/ CNY mid-point today at 6.5713 (vs. yesterday at 6.5641)
- China March PMIs: Manufacturing 51.9 (expected 51.2) & Services 56.3 (expected 52.0)
- Heads up for US President Biden to speak on infrastructure on Wednesday
- U.S. Euro Command has raised its alert level following the build-up of Russian forces along the border with Ukraine
- Australia Private Sector Credit for February +0.2% m/m (expected 0.3%)
- Australia Building Approvals for February +21.6% m/m (expected 3.0%)
- Mitsubishi UFJ gives a heads-up to a possible USD300m loss
- New Zealand ANZ business survey for March, final. Business confidence -4.1& Activity outlook 16.6
- Japan Industrial Production for February (preliminary) -2.1% m/m (expected -1.3%)
- UK data - retailers cut prices again, employers more confident about hiring
- China financial media says PBOC will ensure stable liquidity next month
- South Korean February industrial output at its fastest growth since June last year
- US nonfarm payroll (NFP) preview - here's a forecast for +950K
- Fed's Barkin not convinced of use cases for Bitcoin
- Russia suspected of accessing U.S. government communications last year
- More from Fed's Barkin - will hold rates until 3 part test met
- Fed's Barkin says once past this crisis must get fiscal house in order
- South Korean surveyed business outlook hits its highest since August 2011 (for manufacturing)
- Chile's central bank has left its benchmark rate unchanged at 0.5%
- PIMCO's latest outlook - the firm likes a higher USD and higher equities
- Private oil survey data shows a headline build in crude oil inventory
USD/JPYwas bought over the Tokyo fix for a 30-odd point move up to high just over 110.70 - the final Tokyo fix for the year (Japanese fiscal year, that is). The move higher did not stop there, after an hour or so of consolidation the pair moved higher again, to highs just under 111 for the day (as I post). There was little of an obvious catalyst to prompt the move leaving us grasping at what was new during the session:
- Japan's February industrial production posted the first drop in two months (following its sharp rebound in January) with global semiconductor shortages causing carmakers to trim output alongside supply chain complications after the February earthquake
- COVID-19 restrictions are being prepared for Osaka, Japan's second-largest city
- US yields edged higher on a little rebound after their drop on Tuesday US time
The US dollar was mixed elsewhere, higher against the CHF, lower against the AUD (not by much) and barely changed against other majors.
China's official PMIs for March were released today, with both manufacturing and non-manufacturing beating consensus estimates. Australian credit data showed lending for housing carrying on, and lending for business shrinking for the first time (y/y) in the month for just under a decade. Building approvals data out as well showed the pipeline of new housing to be constructed continues to grow.
Regional equities did not have a good day (Australia excluded):
Japan's Nikkei -0.7%, Topix -0.7%
China's Shanghai Composite -0.6%
Hong Kong's Hang Seng -0.2%
Australia's S&P/ASX 200 +1.5%