Forex news for Asia trading Wednesday 5 August 2020
- WSJ reports that "Convalescent Plasma Reduced Death Rate Among Covid-19 Patients"
- Bank of England MPC meeting on Thursday, negative rates? Not yet - preview
- Technical analysis says gold and silver both on the path for a drop
- China Caixin Services PMI July 54.3 (expected 58.0) & Composite 54.5
- Australian June housing finance data, home loans up 6.2% m/m (0.0% expected)
- Key Trump Cabinet ally is heading to Taiwan to show support for its administration
- RBA makes good on its pledge to buy bonds today
- PBOC sets USD/ CNY mid-point today at 6.9752 (vs. yesterday at 6.9803)
- Forex options for expiry at the 10am NY cut on Wednesday 5 August 2020
- Risks should not be disregarded, USD buyers to prevail, EUR/USD to fall to 1.16
- New Zealand - ANZ Commodity Price index for July: +2.3% m/m (prior -0.7%)
- Japan - Jibun Bank/Markit July PMI Services 45.4 (prior 45.0) and Composite 44.9 (prior 40.8)
- Rumour is the Victorian state of Australia will report 725 new coronavirus cases today
- Why to stay bullish EUR/USD this quarter
- More Australian border closures - Queensland closes border with NSW
- Australia services PMI for July 58.2 (prior 58.5) Composite 57.8 (prior 57.9)
- New Zealand Q2 Unemployment rate 4.0% (vs. expected 5.6%)
- Trump considering option on unemployment aid that does not involve Congress
- Australia AiG Construction PMI for July: 42.7 (prior 35.5)
- ICYMI - The Global Times accuses the US of stealing Chinese companies
- Mnuchin says goal is to have deal done by the end of this week
- US economic package update - Meadows and Mnuchin are meeting with McConnell now
- More from China's ambassador to the US - says August 15 meeting to be very positive
- Trump says big number coming out Friday on jobs
- Schumer and Pelosi say still far apart on negotiations with other side
- Trade ideas thread - Wednesday 5 August 2020
- UK press report that UK Chancellor Sunak talks of rate hike
- Private oil data shows a large draw in headline crude oil inventory
- China's ambassador to the US says does not want to see escalation following mutual consulate closures
- China and the US will assess their trade deal on August 15
- Coronavirus - More on the Novavax vaccine story (ungated link)
- Mohamed El-Erian says does not expect stocks to revisit the lows of March 2020
- WSJ report on "Novavax Covid-19 Vaccine Produces Positive Results in First-Stage Study"
After leaping above $2,000 during US trade gold carried on higher to touch above $2,030 before losing some steam. On the currency board, NZD was a gainer after a strong beat on the most recently reported headline unemployment rate. Further details in the jobs report were not as encouraging but the headline of 4.0% unemployment (yes, really) was enough to hold NZD/USD fairly steady around its highs for the session circa 0.6640.
AUD/USD managed to gain some points alongside the stronger kiwi despite another surge in coronavirus cases in its second largest city (to a double record high day of +725 newly confirmed infections and +15 deaths) and another internal border closure; northeastern state Queensland will shut down its border to Australia's largest state of New South Wales from Saturday.
EUR, GBP, yen and CHF all found a small bid also against the US dollar on the session here. Early in session comments from Trump that the jobs number would be 'big' did currencies no harm although moves were not large.
The early days of the month are data-heavy but apart from the NZ jobs report other data did not have much FX-moving impact on the session. There was progress reported out of the US on coronavirus economic relief package negotiations, albeit tentative.
As I post the latest from the Wall Street Journal on another COVID-19 treatment showing positive signs is giving currencies a further little lift against the USD).
