Forex news for Asia trading Tuesday 5th May 2020
Due at 0430GMT:
- Australian Treasurer Frydenberg says support already provided will be enough
- Goldman Sachs raises its 2021 oil price forecast to above $51 / barrel
- ANZ Bank drop their Fonterra milk price forecast to NZ$5.75 (from $6.45)
- Goldman Sachs says the global economy has likely bottomed - coronavirus lockdown efforts working
- Australian weekly jobs data, employment -7.5%
- NZ PM Ardern speaking after NZ has a 2nd day in a row of no new coronavirus cases
- FX option expiries for Tuesday May 05 at the 10am NY cut
- New Zealand - ANZ Commodity Price index for April: -1.1% m/m (prior -2.1%)
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- Australian Treasurer Frydenberg to speak today - on coronavirus restrictions
- Here's the full text of the new forecast of (around) 135k US coronavirus deaths
- US coronavirus news - largest supermarket chain to limit beef and pork purchases
- JP Morgan see US stocks higher - more short covering buying to come
- Australia weekly consumer confidence: 89.5 (prior 85.0)
- Morgan Stanley on the US stock market. Do not sell in May. Do not go away.
- Australia - CBA/Markit PMIs Services 19.5 and Composite 21.7
- Australia - QANTAS extends flight cancellations from end-May through to end-July
- NZ data - March building permits -21.3% m/m (prior 4.7%)
- Australia Construction PMI for April smashes lower: 21.6 (prior 37.9)
- Heads up for Tuesday in Germany - court decision could place limits on ECB action
- ICYMI - Trump administration is “turbocharging” an initiative to remove global industrial supply chains from China
- German state premiers, Merkel to further ease coronavirus lockdown
- UK press report the US spy planes could be pulled from Britain over Huawei
- Trade ideas thread - Tuesday 5 May 2020
- US CDC total cases 1,152,372 up from 1,122,486
- ICYMI - global anti-China sentiment at its highest since 1989 Tiananmen Square crackdown
The USD weakened just a little on the session here today, with equities trading firmer and oil also.
Markets were wary of any escalation in Trump's war of words with China but nothing came. Coronavirus news around the globe was on the encouraging side (expecting the US, where the expected death till was ramped up to around 135,000 by August due to quickening relaxation of lock downs in various states). Combined this saw a slight reduction in fear, benefiting currencies against the dollar. I'll say again, though, just a little - FX moves were not large.
EUR and CAD are little net changed on the session however. In the case of EUR wary eyes are on Germany Tuesday for a legal ruling on ECB QE (see bullets above). Gold was a net loser on the session, only by a few dollars though.
The Australian and New Zealand dollars have both net gained for the session despite poor economic data from both countries.
Japan and China were both on holiday today.
