Forex news for Asia trading Wednesday 6 February 2019
The Australian dollar dropped sharply today in response the Reserve Bank of Australia Governor Lowe backing away from the Bank's oft repeated 'next rate move is likely up' bias to a neutral 'rate outlook is evenly balanced'.
AUD/USD was marked down from above 0.7240 to circa 0.7180. Over following hours it slowly lost more ground and is on approach to 0.7150 as I update. The day as it unfolded (read from the bottom up):
- Responses to RBA Gov Lowe's sharp about face today
- RBA Gov Lowe into a bit of jawboning on the AUD now: lower rates = lower AUD
- More from RBA's Lowe (Q&A): Planned tax cuts will boost incomes this year
- The four analysts expecting an RBA rate cut ... get ready for more to join in
- Australia financial press now: "RBA shifts to neutral"
- AUD marked down on Lowe's admitting next rate move is evenly balanced
- RBA's Lowe says the interest rate outlook is more evenly balanced
Elsewhere:
- Fact Check on the SOTU claims on the US economy
- NZD traders - reminder for the dairy auction on Wednesday London time
- Trump says China has targeted US industries, stolen intellectual property for years
- Details emerging on what Trump will say in his SOTU speech
- Ahead of Trump's SOTU - media reports date scheduled for meeting with NK's Kim
- Want some RBA charts? Here you go.
- Bank of England MPC this week - preview (C'mon Super Thursday!)
- CAD traders - pencil in the week of March 18 for the Canadian budget
- Meanwhile … UK Cabinet ministers hold secret discussions to delay Brexit by 8 weeks
- UK press (Sun) report ministers studying high-tech plan to keep the Irish border open
- HSBC reckon FX ranges are set to break out
- Trade ideas thread - Wednesday 6 February 2019
- Not news … Mnuchin and Lighthizer to hold talks in Beijing early next week
- Private survey oil data shows larger than expected build in headline crude oil inventories
NZD/USD followed a similar pattern to the AUD but with smaller point moves. USD/CAD is net higher on the session alongside.
USD/JPY was a mover, falling during President Trump's State of the Union address. The speech touched on familiar themes, and China got a harsh mention on its trade policies.
EUR, GBP, CHF are all little changed for the session.
Reminder, Singapore, Hong Kong and China markets were all closed today, as was New Zealand. Hong Kong and China remain closed tomorrow (China closed on Friday also).
Still to come:
