Forex news for Asia trading 6 January 2020
- Australian PM Morrison says committing AUD2bn over two years for fire recovery
- More from BOJ Gov Kuroda - while domestic demand remains firm need to monitor overseas developments
- ICYMI - Iraq PM wants US troops out, but is unable to sign bill into law
- BOJ Gov Kuroda - need to keep vigilant about developments overseas
- The implications for the global economy of a full on US military assault on Iran
- Japan's finance minister Aso says the economy is improving
- China services PMIs from Caixin / Markit: 52.5 (expected 53.2)
- China's Global Times says "US debt problem almost out of control"
- PBOC sets USD/ CNY mid-point today at 6.9718 (vs. Friday at 6.9681)
- FX option expiries for Monday January 06 at the 10am NY cut
- Japan Jibun Bank / Markit manufacturing PMI for December: 48.4 (prior was 48.9)
- US President Trump says there will be major retaliation against Iran if they "do anything"
- Monday morning forex gaps fill
- New York Fed chief Williams says low interest rates here to stay
- Weekend PBOC news - will keep monetary policy prudent, flexible and appropriate
- France, Germany, UK say need to de-escalate situation in Iraq and Iran
- Gold and oil markets are open (look up)
- Weekend bounty hunter news - Iran offers $80m for the head of US President Trump
- (Central bank) Blast from the past - comments from Draghi, Yellen
- Here is what’s on the economic calendar in Asia today
- Australian services PMI for December 49.8 (vs. 49.5 in November)
- Trade ideas thread - Monday 6 January 2020
- The 2nd Australian manufacturing PMI for December 48.3 (prior 48.1)
- More on that Iraq parliament vote to boot out US military personnel (its not final)
- Iran on heightened alert. US military aircraft airborne over Baghdad.
- Reports US personnel injured in rocket attack in Baghdad Green Zone
- US State Dept says its disappointed by Iraq's parliament vote on foreign troop withdrawal
- More on the terrorist attack on US personnel in Kenya
- Iraqi militia leader says if US troops do not leave Iraq, they would be considered an occupying force
- Trump says US will strike back, perhaps disproportionately if Iran strikes a US person or target
- US service member and 2 US Defense Dept contractors killed in Kenya attack
- Reports of rocket attack in the Green Zone near the US embassy in Baghdad
- Monday morning open levels - indicative forex prices - 6 January 2020
- Iran says it will no longer observe limits on its uranium enrichment
- Iraqi PM says he was schedule to meet with Soleimani the morning he was killed
- The positive power of doing nothing
Middle East news dominated opening trade in the early hours of Monday, the major points being
- Iran saying it'll abandon the nuclear deal it had with the UN completely
- Rockets hitting the Baghdad Green Zone of the US embassy (US workers injured)
- An attack on a Kenyan base killing a US serviceman and contractors
- US President Trump promised retaliation if necessary, perhaps on a 'disproportionate' scale
- The Iraqi parliament voted to expel foreign troops
Those are the bare bones, more detail in the bullets, above.
Early trade saw an expected 'risk-off' move (AUD/JPY lower) but most (not all) of the early FX gaps were filled to leave rates not too much changed as I update now.
Gold and oil markets opened a little later and both of these surged. Spot gold hit a six-year high and as I post neither gold nor oil has filled its opening jump.
The Canadian dollar has benefited from the higher oil prices, USD/CAD opened a little lower and has declined a touch more since.
Chinese stock markets have had a good session., the Shanghai COmp traded above 3100 for the first time since April last year.
