Forex news for Asia trading Thursday 8 August 2019
- China trade balance data for July - exports up
- Latest estimate for GBP/USD: to 1.17 ahead of the October 31 Brexit date
- RBA 'bias index' says further rate cuts to come
- Just waking up? Global markets focus on the yuan again.
- PBOC onshore yuan mid rate setting was not as weak as expected for CNY
- PBOC sets USD/ CNY reference rate for today at 7.0039 (vs. yesterday at 6.9996)
- FX option expiries for Thursday August 08 at the 10am NY cut
- More from RBNZ's Hawkesby: Confident inflation will rise after the 50bp cut
- Here is how to get a zero % mortgage for 20 years (yes, really)
- Japan to export some semiconductor manufacturing materials to South Korea
- Sky reports that two-thirds of UK exporters yet to take basic steps for no-deal Brexit
- Japan BoP Current Account Balance for June: ¥ 1211.2bn (vs. expected ¥ 1148.8bn)
- China Securities Journal reports China considering new measures to stabilize trade
- Here's a US recession indicator nudging its highest since 2007
- UK data - RICS House Price Balance for July: -9% y/y (expected -1%)
- Another bank expects further easing from the RBNZ, and a lower NZD
- AUD/USD levels for the session ahead
- RBNZ's Hawkesby says the Bank wants to see inflation expectations rise
- Saudi Arabia speaking with other oil producers to discuss ways to halt oil prices slide
- RBA's Bullock says small business facing tighter credit conditions
- RBNZ 50 basis point cut yesterday - but their easing cycle is not over
- More from RBNZ's Orr - low interest rates are just as effective as ever
- Trade ideas thread - Thursday 8 August 2019
- RBNZ Gov. Orr says again negative rates are possibility
The People's Bank of China set the mid-rate for USD/CNY above 7 today for the first time in a decade, weakening the yuan again but not by as much as the market had expected. Expectations for the reference rate were well above the 7.0039 result and the immediate response was u-turn (lower) for USD/CNH and some encouragement for risk currencies. USD/JPY traded a little higher but as I update is holding under its US time high. AUD/USD managed to pop its overnight high to just over 0.6780.
USD/CNH:
NZD/USD was shifted around by further comments from the RBNZ Governor and Assistant Governor. Both Orr and Hawkesby maintained their easy outlook for policy and largely reiterated what they had said the previous day following the shock half-point rate cut. NZD/USD traded a (circa) 0.6440/0.6470 range.
EUR/USD has edged a few ticks higher from early levels but has not been a focus for the session. Cable has performed better, its up 30-odd points on the day here in Asia. The Canadian dollar added points against the USD, helped not only by the better sentiment re yuan but also by steadying oil prices.
Chinese trade data for July was released today, showing further growth in the trade surplus with the US. Exports to the US did pull back (exports were higher to the rest of the world), but imports from the US dropped.
As an added note on the yuan, while it was set at its lowest for 10 years against the USD, against its basket the decline has taken it to its lowest (below 92) since the basket was introduced in 2015 (the basket is against the currencies of 24 of China's trading partners.)
