Forex news for Asia trading on Friday 8 October 2021
- Trade in China property development firm Fantasia bonds suspended
- US House set to vote on the debt bill on October 12
- The USD260m payment due from Evergrande-related firm still not paid
- China has approved increased coal output at 72 mines
- China Caixin/Markit Services PMI for September 53.4 (vs. expected 50.7, prior 46.7)
- Goldman Sachs expect Japanese equities to perform well into, and following, the election
- PBOC sets USD/ CNY reference rate for today at 6.4604 (vs. estimate at 6.4617)
- Japan finance minister Suzuki says will use FX reserves in ESG related investment
- Australia's Health Minister says booster shots (3rd doses) recommended for the immunocompromised
- Singapore and the US are working on a travel bubble
- Reserve Bank of Australia Financial Stability Review
- US Senate votes 50-48, to pass a short-term debt limit bill
- Japan Household spending for August -3% y/y (expected -1.5% y/y)
- Japan wages data for August
- US Senate has the numbers to approve procedural vote - next up is the actual debt ceiling vote
- New Japanese PM Kishida to outline his policy program today, Friday 8 October 2021
- Governor of the Central Bank of Nigeria (CBN) says will launch digital currency in a couple of days
- Goldman Sachs looking for 600K headline Nonfarm payroll data result
- Trade ideas thread - Friday 8 October 2021
- A US nuclear submarine has been damaged in international waters (South China Sea reportedly)
The big news of the session was the US Senate voting to extend the US debt limit. Sixty votes were needed in the procedural vote, which sneaked across the line at 61-38 (one Senator didn't vote ... you had one job?). This set up the actual debt limit vote which need a simple majority and passed 50-48. The bill now heads to the US House for a final vote. The Democratic Party have a clear majority in the House so it appears likely the bill will be easily approved. The vote is scheduled on Tuesday October 12, apparently some time after 5pm Washington time, i.e. early hours in Asia trade.
Yields on US Treasuries rose here, helping USD/JPY add to its Thursday gains. As I post its on approach toward 112.00 (highs circa 111.89/90). Other currencies are very little changed (CAD and NZD are touch firmer) helping yen crosses to rise also.
Mainland China markets returned from the long Golden Week holiday today, local shares opened higher. There is more in the bullets above but just as highlights, coal mines have been asked to boost output, the bond payment (that was due on Monday, actually Sunday but that was a weekend day) by an Evergrande-backed firm has still not been paid and the private survey services PMI (Caixin) moved back into expansion in September.
