ForexLive Asia FX news wrap: Awaiting the NFP and then Powell
Forex news for Asia trading Friday 4 October 2019
- RBA's Ellis - manufacturing performing strongly, exports increasing
- Fitch ratings says cannot rule out further easing measures by the BOJ
- China's Global Times says China will not interfere in the internal affairs of the US
- Reserve Bank of Australia Financial Stability Review
- Australia Retail Sales for August: +0.4% m/m (expected +0.5%)
- AUD, NZD both above overnight highs. Australian retail sales data and RBA coming soon.
- Japanese Fin Min says no immediate need for stimulus measures
- Your daily reminder that China is on holiday and there is no CNY setting today
- JP Morgan Global Composite PMI - Global economic expansion to joint-weakest rate since mid-2016
- Hong Kong September PMI shows business confidence at its lowest since 2012
- Six potential scenarios that could send the USD lower
- Asset management firm Stone Ridge (15bn AUM) plans to launch a bitcoin futures fund
- More from Fed Vice Chair Clarida - financial conditions in the US have eased substantially
- Brexit - EU gives Boris Johnson one week to come up with an acceptable plan
- Westpac says it thinks a December rate cut from the RBA is a real possibility
- HP to cut up to 9,000 jobs
- Fed's Clarida: Slowing global economy has hit US economy
- Australia press: AUD1bn for small scale infrastructure projects, to employ thousands
- Mexican deputy foreign minister says sees significant advances on new NAFTA
- Brexit rumours keep on coming. UK press reports up to 30 Labour rebels could join in backing Boris' plan
- The two biggest guns on the FOMC speaking - Clarida and then Powell
- Trade ideas thread - Friday 4 October 2019
Asian forex traded in small ranges awaiting data from the US and the Federal Reserve Chair speaking. We did get extensive comments from Federal Reserve Vice Chair Clarida but despite their length they did not add anything fresh or new. Clarida hedged his comments, looks good, careful of deterioration, will do what is appropriate. You know, the usual. Central banker speak at its best I guess.
On the Brexit front, the European Union have given UK PM Boris Johnson one weelk to come up with an acceptable plan for a deal (see bullets above).
The data of focus for the day was retail sales (August) from Australia, a small miss but an improvement on the month with tax cut spending cited. Also from Australia was the half-yearly Reserve Bank of Australia Financial Stability Review and a speech from Luci Ellis, RBA Assistant Governor (Economic Group). Through all this the AUD/USD has maintained a small range only and is mid-range circa 0.6750 as I post. NZD/USD is slightly better bid, up 25 or so points when it hit its highs and is just off there now.
EUR/USD also made a small gain, up 25 or so points from its low also. Cable is a similar story.
CAD is up a few tics against the USD, as is yen. USD/CHF, conversely, is a touch higher. Gold maintained above 1500USD.
Still to come:
- US nonfarm payroll day Friday 4 October 2019 - preview
- Goldman Sachs NFP preview
- Another US nonfarm payroll preview
- US nonfarm payroll data due on Friday 4 October 2019 - preview
- FX option expiries for Friday October 4 at the 10am NY cut