Forex news for Asia trading Monday 6 July 2020
- More weekend ECB comments - Villeroy says exceptional policy response "will be long-lasting"
- China's Shanghai Composite Index is now up 3% on the day
- Long EUR/CHF trade recommendation
- China warns Canada - GT says "meddling in HK to backfire on Canada’s economy"
- Australia ANZ job advertisements survey for June: +42.0% m/m (prior 0.5% m/m)
- PBOC sets USD/ CNY reference rate for today at 7.0663 (vs. Friday at 7.0638)
- FX option expiries for Monday July 6 at the 10am NY cut
- South Korea reports 48 new cases of coronavirus
- Australia - Melbourne Institute monthly CPI inflation for June: 0.6% m/m (prior -1.2%)
- New Zealand - ANZ Commodity Price index for June: -0.7% m/m
- Coronavirus - Confirmed - Australia NSW, Victoria border closed.
- Weekend Australian media - more China retaliation against Australia expected
- Hong Kong June PMI improves to 49.6 (prior 43.9)
- Coronavirus - Australian states NSW and Victoria to close border
- ECB President Lagarde spoke on Saturday - expects euro zone faces 2 years of disinflation
- Coronavirus - Oxford University is leading in the vaccine race
- Trump tweets US coronavirus cases up because of more testing
- The US will send two aircraft carriers to the South China Sea for exercises
- It looks like COVID-19 did not start in China after all - Italy, Spain had it much earlier
- Goldman Sachs forecast for US GDP growth revised down
- BoE Gov Bailey (weekend press report) preparing City for negative rates
- Trade ideas thread - Monday 6 July 2020
- Coronavirus case spike sends Spain into second local lockdown in 24 hours
- Texas coronavirus hospitalisations at a record high, again - 7th day in a row
- UK press report the government is looking at making it easier for firms to access coronavirus support loans
- Weekend coronavirus news - Tokyo Governor urged residents not to travel beyond its borders
- Weekend news - Kanye West announces he'll be running for US President in 2020
- Here is what’s on the economic calendar in Asia today
- Monday morning open levels - indicative forex prices - 6 July 2020
- Florida adds another 10,000 coronavirus cases, deaths rise in Iran and Indonesia
- Australian state sees a coronavirus surge - 'strict lockdown' no going out in place
- Sign up for the TradeON Summit on July 28
A strong day for the risk trade across FX and Chinese equities with any bad news shrugged off and good news (or even news not as bad as expected) embraced. The US has become a global red-hotspot for coronavirus outbreaks but the weekend numbers from the country showed signs of improvement. Care must be taken given the holiday weekend is likely to have impacted testing and reporting, add in alongside reports that demands for ICU beds in the worst-hit parts of the country is troubling supply means the US is not out of the woods yet. Cases in Tokyo continue to climb, as do those in Australia.
Sentiment, though, was very much risk on. The Shanghai Composite was up +3% at one stage and other indexes in the country traded similarly. US equities (Globex futures) were also strong on the session, up near 1%. In FX, AUD and NZD gained, and so did EUR, GBP against the USD. Yen and CHF fell against the dollar. So far for the session AUD has shrugged off the acceleration of COVID-19 cases in the country's second largest city, to a record +127 cases reported for the preceding 24 hours and very harsh lockdown introduced in some areas, harder lockdowns than previously. Further, the border between Victoria and NSW (Australia's two most populous states, by far) is to be closed in response to the surge in Melbourne (capital city of Victoria).
AUD not bothered by any bad news, but for how long?
