Forex news for Asia trading for Tuesday 6 April 2021
- China is said to have asked banks to reduce credit until year-end
- There is a small chance of AUD volatility (to the downside) on today's RBA decision - here's why
- China Caixin/Markit PMIs for March: Services 54.3 and Composite 53.1
- Australia ANZ job advertisements for March 7.4% m/m (prior revised to +8.8% from +7.2%)
- PBOC sets USD/ CNY reference rate for today at 6.5527 (vs. Friday at 6.5649)
- China is testing its digital yuan - may come with a use-by date
- S&P - China securities removed will be re-eligible for inclusion to some fixed income indices
- Has the Reserve Bank of Australia (RBA) failed Australians?
- US Senate rules to allow further Biden stimulus
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- Some market chatter of AUD/USD stop-loss buy orders just above market
- Japan Household spending for February -6.6% y/y (expected -5.0%)
- Japan Labor cash earnings for February -0.2% y/y (vs. expected -0.6% )
- Credit Suisse Archegos-related loss may be up to US$5bn
- UK to launch a government-backed loan scheme to help companies recover
- Firms support UK Chancellor Sunak's super-deduction" investment encouraging tax break
- Credit Suisse says it'll be updating the market over Archegos hedge fund damages
- World Bank head expects China, the US & other G20 to extend debt service freeze
- Near-term demand for oil may be derailed due to Europe virus debacle
- Barclays says market pricing of the Fed hiking cycle is too aggressive
- Tuesday 6 April 2021 Reserve Bank of Australia monetary policy meeting - preview
- Trade ideas thread - Tuesday 6 April 2021
It was a subdued day for ranges for the major forex pairs with some slight strength for the US dollar the overarching theme: EUR, GBP, AUD, NZD, CAD, yen, CHF all slightly weaker against the USD. Gold was a bit of an out performer in this context, its trading above $1734 as I post.
There were a few notable items in the data released during the session (see bullets above):
Japan's real cash earnings (+0.2% y/y) recorded their first gain in a year, albeit largely due to consumer prices falling
Australia - ANZ March Job Ads rose a heft 39..7% y/y, benefitting from the tailwind of the bug slump as a base effect this time last year. Neverhtelss, the m/m rise was solid and does indicate anongoing improvement in the Australian labour market
China's private-survey PMIs (services and composite) both recorded gains in March
There was no news of note of much impact upon FX although ongoing position offloading at Credit Suisse in response to the Archegos implosion had a tangential effect (see bullets above). As I post the China credit curtailment headline is crossing (first bullet point above) which should weigh on the 'risk trade.
Regional equities:
Japan's Nikkei -0.8%, Topix -0.7%
China's Shanghai Composite -0.1%
Australia's S&P/ASX 200 +1%
Gold:
