Forex news for Asia trading Tuesday 9 June 2020
- Coming up from China tomorrow - inflation data for May - preview
- Further NZD strength would be unwelcome to the RBNZ
- Australia NAB business survey for May: -20 (prior -45) conditions -24 (prior -34)
- PBOC sets USD/ CNY central rate at 7.0711 (vs. yesterday at 7.0812)
- FX options for expiry at the 10am NY cut on Tuesday 9 June 2020
- Westpac forecast 4% contraction for Australian economic growth this year
- NZ Business Confidence June (preliminary) -33.0 (from prior -41.8)
- FOMC meet this week - another gold support coming up
- China car sales for May rose 1.9% y/y
- Oil price forecast, lower to end of 2020
- Libya has halted oil production at an oilfield due to armed incursion
- Japan wages data for April, Labor cash earnings -0.6%y/y (expected -1.0%)
- UK BRC Sales like-for-like for May: +7.9% y/y (expected 3.0%,prior 5.7%)
- RBNZ's Bascand says NZ house price drop could be worse than expected
- Australia business confidence and conditions data due today - what to expect
- More on North Korea to shut down communication with the South
- New Zealand ANZ Truckometer (May) Heavy Traffic index: +86.9% m/m (vs. prior -45%)
- ICYMI - China's warning against its citizens visiting Australia
- Guggenheim's Minerd likes gold - "accumulation of gold … a responsible policy response"
- Trade ideas thread - Tuesday 9 June 2020
- Iraq's oil minister says fully committed to the OPEC+ oil output cut deal
- Reports from Iraq a coalition aircraft has crash landed at Camp Taji Airbase
The USD had a bit of a rebound in trade here in Asia, higher nearly across the major FX board. Yen was the exception, USD/JPY carried on with its overnight slide to hit new lows (briefly) under 108.00.
EUR, GBP, CAD, AUD, NZD, even CHF, all traded lower against the US dollar, to varying extents. These moves, combined with the persistent fall for USD/JPY meant yen crosses were heavy on the session.
As for fresh, impactful data, there was little. There was a bit of news out of the Libya and Iraq but these should not have triggered the FX moves as we saw. North Korea cut communication lines with the South, which may have been a yen positive on the day. It would not have been a negative, but I hesitate to attribute much of today's move to this news item.
Data showed some rebound for indicators from NZ and Australia while wgaes in Japan slipped.
Gold did a round trip: