Forex news for Asia trading for Monday 4 January 2021
- Japan may declare a state of emergency for one month
- Chinese yuan kicks off the year with a move higher
- FX option expiries for Monday 4 January 2021 at the 10am NY cut
- US' Fauci warns that the US coronavirus outbreak 'likely will get worse' in coming weeks
- Chinese billionaire Jack Ma suspected missing
- Coronavirus - New Zealand has further tightened border controls
- South Korea expands ban on private gatherings larger than four people
- Japan PM Suga says COVID-19 situation is extremely severe
- More details emerging on plans for state of emergency in Tokyo and surrounds
- US considering giving some people half the dose of Moderna’s COVID-19 vaccine
- <a href="https://www.forexlive.com/news/!/china-december-caixin-manufacturing-pmi-530-vs-547-expected-20210104" target="_blank" title="A big drop from November but well in expansion territory nevertheless The official manufacturing PMI for December was out last week ICYMChina December Caixin Manufacturing PMI 53.0 (vs. 54.7 expected)
- Coronavirus - UK press report Scotland to enter further lockdown on Monday
- PBOC sets USD/ CNY reference rate for today at 6.5408
- USS Nimitz aircraft carrier is no longer leaving the Middle East due to Iran threat
- China says US plans to delist three Chinese telecom firms are “political”
- Asia market manufacturing PMIs all strong for December
- Japan - Jibun Bank/Markit Manufacturing PMI (final) for December 50.0
- Japan is considering a Tokyo (COVID-19) emergency declaration within a week
- Singapore Q4 economic growth +2.1% q/q and -3.8% y/y
- Crypto keeps on surging, ETH hits $US1,000
- Reports out of the UK that the military has been called in to assist in COVID response
- Australia - some speculation around of an early Federal election (Q3 or Q4 2021)
- US equity index futures open for 2021, little change from the close of 2020 (gold higher though)
- OPEC sees plenty of downside risks for oil markets in the first half of 2021
- Smaller Chinese firms, retailers struggling to access credit
- Australian Markit December Manufacturing PMI 55.7 (Nov. was 55.8)
- Uk press front page proclaims Bitcoin a "High Flyer"
- Trade ideas thread - Monday 04 January 2021
- For the oil traders - there is a full OPEC+ meeting scheduled for Monday January 4
- Monday morning open levels - indicative forex prices - 4 January 2021
- Bitcoin continues to soar as it hits $34,000
Happy New Year to all ForexLive traders!
Early Asia trading was characterised by even thinner liquidity than usual with New Zealand out on a holiday and we did see some choppy trading to kick off the new forex year. Swings continued even as further Asian centres entered. USD/JPY hit highs above 130.30 and has subsequently dropped back to under 103.00. There are indications Tokyo and 3 surrounding prefectures are to enter a state of emergency later this week (a decision has not yet been made, some reports nominate January 9 as the date for the declaration). This news weighed on Japanese stocks, which are down as of posting.
Out of the US we got news of the potential to restrict the vaccine shots to 1 (instead of 2) to spread the shots wider (see bullets above).
On the geopolitics front the USS Nimitz carrier group has been retained in the Middle East on concerns of threats from Iran. This has helped with yen strength on the session.
UK news centred on the unfolding COVID-19 disaster as cases surge and further lockdown restrictions appear likely, and likely to persist until spring.
EUR, GBP, AUD, NZD, CAD are all up (small) against the USD after some thin-liquidity swings. Gold gained to above $1900. Crypto soared.
