Forex news for Asia trading for Thursday 6 May 2021
- China's state planner will suspend China-Australia economic dialogue
- Rumours are New Zealand will shut its border to Sydney today
- Goldman Sachs see lower iron ore prices ahead, will be a negative for AUD
- There is an election coming up in the UK on Thursday 6 May 2021 - Scotland. Preview and where to for GBP.
- PBOC sets USD/ CNY reference rate for today at 6.4895
- Australia state of NSW reports another one case of COVID-19 - some restrictions reintroduced
- NZ May, preliminary business confidence +7.0 (prior -2.0) and activity outlook +32.3 (prior +22.2)
- Who's a dove and who's a hawk on the Federal Reserve FOMC? A visual guide
- WSJ op-ed: "Biden’s Vaccine Patent Theft"
- BOJ March monetary policy meeting minutes - full text
- BoA looks for a higher AUD on still-rising commodity prices
- AUD traders heads up - RBA Dep Gov Debelle speaking Thursday 6 May 2021 “Monetary Policy during Covid”
- New Zealand building approvals for March: +17.9% m/m (vs. prior -18.2%)
- EUR/USD rebound is transitory, will resume falling
- Fed's Rosengren says it is too early to talk about tapering QE
- National Australia Bank says the rebound in the Australian and New Zealand economies is better than expected
- Brazil raises benchmark lending rate 75 basis points to 3.50%
- Early study shows booster shot of Moderna vaccine effective against COVID-19 mutants
- Trade ideas thread - Thursday 6 May 2021
- The UK has sent the Navy to patrol Jersey port amid dispute with France
- NZD barely changed after comments from RBNZ's Bascand - rates need to stay low for quite a long time
The Australian dollar was hit lower on further escalation out of China today. China has been placing imposts upon imports from Australia, effectively pricing them out their market. This is in relation to perceived slights from Australia re ongoing Chinese human right abuses. The escalation today has come in the form of an indefinite suspension of all activity under the China-Australia Strategic Economic Dialogue mechanism.
Prior to the news crossing, both the Australian and New Zealand dollars had begun a small drip lower on rumours of New Zealand to close its border with Sydney (Sydney is recording a couple of fresh coronavirus cases). We are awaiting an announcement out of NZ's Health Ministry still. AUD and NZD had edged a touch higher earlier in the session prior.
The selling of the Australian dollar on China's move hit the NZD also and has since overflowed into a lower EUR, CAD, GBP. Even yen and CHF have dipped against the USD.
In other news from the session today it was the first day back for the week after the long holidays in Japan and China. Chinese commodity futures markets moved higher (supportive of AUD a little earlier in the session).
