Forex news for Asia trading for Tuesday 6 October 2020
- Comments on Australia's trade balance data for August
- Australian government budget will be released after the RBA decision on Tuesday - preview
- RBA monetary policy announcement due at 0330GMT - preview (spoiler - on hold)
- RBA emails reveal COVID-19 economic fears, confusion
- Goldman Sachs scenario on a 'blue wave' election win - mixed implications for equities
- FX option expiries for Tuesday October 6 at the 10am NY cut
- White House with a grim confirmation: Trump to continue to receive 24 hour care
- Australian trade balance data for August, exports fall more than expected
- If you thought Trump was gasping for air you are not alone
- Reuters polling show analysts see even more USD volatility ahead of the US election
- US NHC: Hurricane hunter aircraft indicate that Delta has become a hurricane
- White House blocking new FDA guidelines for emergency release of a coronavirus vaccine
- Chatter about that House panel will examine break up of tech giants
- Reminder - China is closed again today, markets there reopen on Friday (Asia time)
- Trump is out of hospital
- Australia weekly consumer confidence 95.7 (prior 95.0)
- Trump tweets he will be back on the campaign trail soon
- NY Times reports the next Trump-Biden debate may be held virtually
- Mnuchin / Pelosi exchange indicative of distrust between the two sides
- EUR/USD outlook - Citi: the "likelihood of EUR/USD breaking 1.20 remains high"
- NZ data - NZIER business opinion survey: Q3 business confidence index
- How to analyze markets - fundamental and technical analyses
- Trade ideas thread - Tuesday 6 October 2020
Ranges for major FX rates stayed in small ranges here during the Asia session with very little news nor data flow. In addition, China remained on holiday (Chinese markets return on Friday, October 9).
On the politics front we had a carefully stage-managed departure from the hospital of Trump, whisked back to the White House by Marine One helicopter. Trump headed up to the balcony for a photo-op but was displaying obvious signs of breathing difficulty. The White House later confirmed he will remain under round-the-clock medical care while staying in the residence. Work arrangements have been made for Trump so he will not have to go into the West Wing, but I doubt anyone can stop him if he decides to head there.
US equity futures found a small bid during the media circus but soon had their gains chopped by a news headline saying the US House is moving to examine the break up of tech giants. Let's see if anything comes of that but it was enough to trigger a wobble.
There was a near-total absence of any US coronavirus economic stimulus news nor rumour. The only indication we did get was not of a lot of significance but nevertheless a bit of a downer. Mnuchin requested a meeting with Pelosi on Friday but she gave him the cold shoulder saying she did not want anyone from the White House coming into the building due to the virus outbreak hotspot there. Negotiation via phone only.
USD/JPY is, net, just a touch lower on the session. EUR, AUD, GBP, NZD and CAD are all up very small against the US dollar. Gold is down just a few dollars. The ranges are all small.
Still to come is the Reserve Bank of Australia policy announcement, due at 0330GMT, with Australia's federal government budget due at 0830 GMT.
US media was harsh on Trump:
