Forex news for Asia trading on Friday 4 June 2021
- Draft of Japan fiscal repair 'blueprint' says finances in 'dire straits'
- US President Biden will speak on the May NFP Friday at 1415 GMT
- More Australian analysts change their RBA forecasts, ANZ say the Bank to move to 'flexible' QE
- Australia finance commitments for housing, April +3.7% m/m
- PBOC sets USD/ CNY mid-point today at 6.4072 (vs. yesterday at 6.3811)
- Meme stock swings - here's a refresher on gamma squeeze if you need
- Analysts are evenly split on their outlook for the USD
- NAB forecasts the RBA will not roll its YCC forward to November 2024
- Westpac forecasts the RBA will change to a flexible QE regime
- Japan Household spending for April: 13.0% y/y (expected +9.3% y/y, prior +6.2%)
- Chinese media cites analysts, says expectations for yuan appreciation have abated
- US authorities investigations of ransomware hacks similar priority as terrorism
- New Zealand Building work done for Q1 2021: +3.7% q/q (expected +3%, prior -1.5%)
- Where to for the USD, AUD, JPY on the US NFP report
- US indices slumped, 'risk' FX lower. How did you all enjoy the Fed taper sneak preview?
- ICYMI - Norway & the UK have reached an agreement on post-Brexit trade deal
- DOGEcoin is launching on Coinbase imminently
- Trade ideas thread - Friday 4 June 2021
- June 4 Tiananmen Square massacre - China deploys 7,000 police to prevent remembrance ceremonies
- Goldman Sachs US nonfarm payroll preview for May
Bitcoin dropped under US$38K on a tweet from TSLA CEO Elon Musk once again announcing his break up with the crypto (he tweeted weeks ago on better crypto alternatives). Pic of the tweet is below, note the broken heart emoji (I'm not sure if that is fundamental or technical analysis TBH).
Across major FX we tracked more or less sideways ahead, of course, of the much-awaited labour market report from the US, May figure for nonfarm payrolls (due at 1230GMT).
Gold was a little more decisive, it dropped towards US$1855 and as I update its mid-range circa $1864.
News flow was fairly light for the session, although we did get a cascade of Australian analyst forecasts from the RBA, all looking for a mini taper ahead (see bullets above).
Data - we had Japanese household spending surging y/y but up only small m/m. Y/y data continues to show the base effects of the economic shock in H1 of 2020. Australian housing finance growth continues to surge, what you get when interest rates are dribbling along at historic lows.
For previews of the nonfarm payroll report:
- Where to for the USD, AUD, JPY on the US NFP report
- Goldman Sachs US nonfarm payroll preview for May
- May non-farm payrolls preview: By the numbers -- big gap edition
