ForexLive Asia FX news wrap: Shanghai Composite hits new highs since January 2018
Forex news for Asia trading Tuesday 7 July 2020
- Coronavirus - Australian media reports Victoria state premier considering 4-week statewide lockdown
- Tik Tok will stop operation of its app in Hong Kong in the coming days
- Coronavirus - Japan chief cabinet secretary Suga not flagging any extra restriction as Tokyo cases climb
- JPMorgan with one for the contrarians - a Biden victory could be positive for stocks
- NZD traders - a heads up for the dairy auction on Tuesday, London time
- Stocks in China off to a flying start, Shanghai Composite up around 2%. Above 3400 for 1st time since Jan 2018.
- Citi on gold's multi-year bull cycle - higher prices ahead (but not yet)
- PBOC sets USD/ CNY reference rate for today at 7.0310 (vs. yesterday at 7.0663)
- FX option expiries for Tuesday July 07 at the 10am NY cut
- Australian Victoria state new coronavirus cases +191 in the past day
- US securities firm says the main stock market risk … is an economic recovery
- Updated Texas new coronavirus number: rise of more than 8,323 to nearly 210,000
- Oil price forecasts from Citi - continue to see an oil price recovery
- US coronavirus - BoA temporarily closes approximately 50 branches in Central Florida
- RBA monetary policy meeting preview and where to for the AUD (scenarios)
- Japan wages data for May, Labor cash earnings: -2.1% y/y (expected -1.0%)
- Australia weekly consumer confidence 92.1 (prior 93.0)
- Japan - Tokyo records 5th consecutive day of +100 new coronavirus cases
- EU threatens retaliation against the US if it puts tariffs on EU goods (Boeing - Airbus)
- New Zealand - NZIER economist says contraction in GDP will not be as severe
- President Bolsonaro of Brazil is said to be displaying symptoms of coronavirus
- Australia Services PMI for June: 31.5 (prior 31.6)
- NZ data - NZIER Quarterly Survey of Business Opinion: - sharp drop in business activity
- The UK 6 month stamp duty holiday may take effect immediately from Wednesday
- BoE Governor Bailey will postpone his meeting with government members
- North Korea says it has no intention to sit down with the US
- Canada - Montreal expected to announce soon a mandatory mask rule in enclosed public spaces
- Texas new coronavirus cases up 5,318 to over 200,000 total cases now
- Trade ideas thread - Tuesday 7 July 2020
- Air New Zealand suspends new inbound international flight bookings
- China - US phase 1 trade deal: China called on to buy more US products
- RBA monetary policy decision due on Tuesday 7 July 2020 - preview
A big mover in FX was the Australian dollar, hit on news of a continued and accelerating surge in coronavirus cases at chatter of a four week lockdown reimposition in the country's second most populous state, Victoria (capital city Melbourne is where cases are rocketing higher).
AUD/USD highs just ahead of 0.7000 were rejected as news (rumours) crossed of a jump in cases by nearly 200 - no sooner had I posted it than AUD began to fall. Its since been as low as under 0.6960 as the rumours were shown to be accurate. But, AUD is not the only loser against the USD, NZD, EUR, GBP and CAD have all had similar sizxe falls while usynee and USD/CHF gained. This is a familiar response across forex to heightening fears on the virus. The news out of Australia came after US cases once again increased strongly, and Tokyo was above 100 for a fifth consecutive day.
Stocks in China gained at the opening but the heat has come out of the rally since. Still up on the day but as I post the gains have been halved.
The RBA meeting is yet to come, due at 0430GMT, previews above in the bullets.
AUD/JPY lower as coronavirus fear heightens again