Forex news for Asia trading Thursday 9 April 2020
- The RBA Financial Stability Report referred to some Aussies withdrawing cash. A LOT of cash.
- Want to learn a bit about 'unconventional' monetary policy, QE? Here you go.
- Japan's Aichi prefecture, home of Toyota, will declare state of emergency tomorrow
- New Zealand Treasury Monthly Economic Indicators report
- Yamaha, Hyundai announce production halts
- UK govmt ministers may extend coronavirus lockdown beyond 3 weeks
- Singapore PM says forced to take stricter measures due to coronavirus pandemic
- FX option expiries for Thursday April 09 at the 10am NY cut
- Reserve Bank of Australia Financial Stability Review
- PBOC sets USD/ CNY central rate at 7.0536 (vs. yesterday at 7.0483)
- NZ ramp up the coronavirus lock down - all arrivals to be quarantined
- Bank of Japan Governor Kuroda says will not hesitate to add easing if necessary
- Korea's central bank leaves its benchmark cash rate unchanged at 0.75%
- European Union finance ministers fail to agree, talks begin again at 1500 GMT on Thursday
- Re-opening the US economy: Trump does not indicate a time frame, Kudlow says 4 to 8 weeks
- Goldman Sachs on oil and OPEC+ meeting - a deal might support the oil price, but only briefly
- Heads up for the Asian time zone holidays on Friday
- US CDC guidelines for essential workers with infection to return to work
- UK data - RICS monthly house price balance for March +11% (expected +10)
- New Zealand - Retail Card Spending for March -3.9% m/m
- Trump - much progress made on oil dispute between Russia and Saudis
- Saudi Arabia’s sovereign-wealth fund pours $1bn into stakes in 4 European oil firms
- NZ data - ANZ Truckometer for March -8.0% m/m (prior -3.0%)
- Fed's Kaplan says to 'stay tuned' for further possible Fed support programs
- Goldman Sachs Private Wealth Management says time to get into stocks
- FT: JPMorgan stops small business loans outside the government’s program
- France to extend its coronavirus lockdown, Macron to address the nation (on Monday)
- Kuwait indicates OPEC+ is 'moving towards' production cut of between 10-15m bpd
- Australian Treasurer Frydenberg says will be paying back the debt burden for years to come
- Trade ideas thread - Thursday 9 April 2020
There was little in the data and news flow during the day here to take markets by surprise, which also helped to keep ranges in check. Also, too, there are plenty of big events to come during the Europe/UK/US sessions ahead and the long weekend holiday.
UK PM Boris Johnson spent his third night in intensive care. There were no updates on his condition out of the UK. The London morning is not far off so I expect we'll get an update in the hours ahead. So far the information flow around Johnson's condition has been kept very tightly on a leash and this appears unlikely to change. Cable traded little more than a 25 or so pip range around 1.2400.
EUR, too, was tightly range bound, 1.0855/80 more or less confining it. The Euro finance minister meeting failed to reach agreement but is set to recommence formally at 1500GMT on Thursday. If it stretches on and on (the earlier meeting this week went for 16 hours) any announcement may have an outsize impact if it comes after UK markets close and into the thinly traded pre-holiday US Thursday market, or even later.
Expect similar for oil. The OPEC+ meeting is set to officially commence at 1400GMT, news flow is hinting at a deal for a cut (of 10m barrels a day) but please be careful ladies and gentlemen, reaching agreement appears even more difficult than it would have been at the meeting which saw the existing agreement disintegrate. Add in the very thin pre-holiday trading conditions and enhanced, perhaps bordering on erratic, price swings seem likely.
Also on the agenda is the US jobless claims numbers (initial and continuing) along with the US Congress consideration of the economic relief measures.
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ps. Re the holiday on Good Friday, 10 April 2020 for Asia
Markets closed:
- New Zealand (also closed Monday 13th)
- Australia (also closed Monday 13th)
- Hong Kong (also closed Monday 13th)
- Singapore
Open:
- Japan
- China
And ForexLive ... I'll be checking in on both Friday and Monday with some updates. Keep an eye out of you are about, and Happy Easter!
