Forex news for Asia trading Thursday the 7th of May 2020
Coming up soon:
Also this:
- Oil - Here is why US gasoline demand is set to rise
- GBP is dribbling lower ahead of the Bank of England decision due soon
- China Caixin/Markit PMIs for April: Services 44.4 and Composite 47.6
- Australia trade balance for March: surplus AUD 10.602bn (expected surplus AUD 6bn)
- PBOC sets USD/ CNY reference rate for today at 7.0931 (vs. yesterday at 7.0690)
- FX option expiries for Thursday May 7 at the 10am NY cut
- NZ finmin Robertson says economic damage will be felt acutely in New Zealand
- Jeffrey Gundlach says pressure building on Fed funds to go negative … 'fatal'
- US Senator who dumped stocks after closed door intel briefing - so did his brother in law
- Japanese markets return after the long holiday today - where to for yen
- EUR/USD technical analysis - stay biased lower
- Will Australia's Q1 GDP print positive due to the huge retail sales result in March? (TLDR version: No)
- Australia - AiG Services PMI for April 27.1 (prior 38.7)
- ECB has given the middle finger to the German constitutional court
- The US economic recovery - V, W or Nike shaped?
- US Sec State Pompeo says again China did not act fast enough over the coronavirus outbreak
- Brazil central bank slashes its benchmark rate by 75 points, to 3.0%
- US President Trump vetoes measures to curb his war powers directed against Iran
- US Sec State Pompeo assessing China's oversight of Hong Kong - delaying report to Congress
- White House expresses 'frustration and disappointment' on US-China relationship
- Trade ideas thread - Thursday 7 May 2020
- AUD welcomes back the US-China trade war - Trump says he'll know in 2 weeks
During the US afternoon we had anti-China rhetoric again from US President Trump and also from Secretary of State Pompeo. Trump focused on trade issues, saying he still had not assessed China's implementation of the ohase 1 agreed buying of US goods (but he would be able to do so in twio weeks time) while Pompeo once again pointed the accusing finger at China over the COVID-19 outbreak.
The headlines weighed on AUD (and others), sending AUD/USD under 0.6400 again to lows circa 0.6380. NZD, too dropped away. Data from Australia followed, a weaker services PMI again did not help the AUD. However, we did get some supportive export data later, the March trade data indicating exports in the month bouncing back more than excepted from their weakness in February. AUD/USD has subsequently recovered all the ground it lost since late US time. A softer PMI from China during the session was shrugged off. NZD, too, retraced.
Cable is net lower on the session however. The Bank of England MPC announcement is due ttodfay - updated forecasts are expected and there is some potential for additional QE measures (although these are more likely to be announced next month, not today).
USD/JPY gained a few points on the session - it had lost ground while Japanese markets were closed on Monday, Tuesday and Wednesday this week, just a small bounce back as Japan returned.
EUR and CHF are little changed against the USD. CAD followed broadly the same sort of path as AUD and NZD, weaker early and then back. Gold up a few dollars on the session.
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