Forex news for Asia trading Friday 7 August 2020
- Japan fin min Asao says government finances facing a difficult situation
- More from RBA's Ellis - job support packages will make recovery a little stronger
- ICYMI - Russia and China are partnering to reduce their dependence on the US dollar
- RBA's Ellis says will maintain loose policy for as long as required
- RBA statement says sees pace of recovery slower than previously forecast
- Trump signs executive order to address threat of WeChat
- Japan to agree soon to a 100 mln coronavirus vaccine shots deal with Astrazeneca
- PBOC sets USD/ CNY reference rate for today at 6.9408 (vs. yesterday at 6.9438)
- FX option expiries for Friday August 07 at the 10am NY cut
- Trump has signed an executive order on ByteDance to divest TikTok
- Mnuchin says coronavirus talks are close on some issues, apart on others
- Canada's response to Trump's new tariffs will be announced at 1500 GMT on Friday 7 August 2020
- HSBC are becoming more selective with further losses for the USD limited to AUD, NZD
- Australia (Victoria) new coronavirus cases today expected to be 451
- Japan Household spending for June: -1.2% y/y (expected -7.8%)
- Japan wages data for June: Labor cash earnings -1.7% y/y (expected -3.0%)
- Canada says Trump's new tariffs on the country (aluminium) are unwarranted, unacceptable
- EUR/USD: A Buy On Dips; USD/JPY: Next Move Lower; GBP/USD: 1.32 Next Critical Levels
- Australia Services PMI for July: 44.0 (prior 31.5)
- ICYMI: US Senate votes time is up for TikTok - ban for federal employees
- Silver is supported by more than investment demand, geopolitical risks
- Goldman Sachs non - farm payroll preview (NFP)
- Facebook will allow employees to work remotely until July 2021
- Latest from Meadows on stimulus negotiations, expressing doubt on incentive to proceed
- Trade ideas thread - Friday 7 August 2020
- China's Global Times says the US is becoming the biggest uncertainty in future global economic growth
- US 'Plunge Protection Team' issues 5 recommendations to reduce risk from China
Trump signed executive orders to cut US business ties with both WeChat and TikTok (effective in 45 days time). While the TokTok move was not a big surprise the move against WeChat is arguably more significant - the tool is widely used for cross border (notably North America & China) communication by business and consumers.
The news of the moves came mid-way through what had been a quiet pre-NFP session for major FX. Once the news crossed, though, currencies came under a bit of pressure against the US dollar. China-US tensions are not going to disappear any time soon. Having said this, moves have not been large.
From Australia today we got the Reserve Bank of Australia's quarterly Statement on Monetary policy which contained nothing to surprise - the Bank sees a slower recovery ahead; higher unemployment, for longer; is not considering negative rates; will do more if necessary (ps. the next rate cut, should it come, would be to 0.1% from the current 0.25% - just IMO) - the Bank also added it assesses the AUD at a fair rate given fundamentals.
US stimulus talks still appear stalemated.
Silver and gold had early Asia moves higher, the % moves in silver were large.
Still to come:
