Forex news for Asia trading Thursday, May 9 2019
- More on RBNZ Gov Orr's comments earlier - too early to tell if another cut needed
- UBS on gold … prices managing to hold above the $1280 support area is encouraging
- China total financing for April comes in lower than expected
- More from BOJ's Kuroda: Overseas confidence in yen seems very firm
- China inflation for April: CPI 2.5%y/y (expected 2.5%) & PPI 0.9% y/y (0.6% exp)
- PBOC sets USD/ CNY reference rate for today at 6.7665(vs. yesterday at 6.7595 )
- BOJ Gov Kuroda says the weakening global economy a negative for Japan's exports and production
- Trump says China broke the deal
- US-China trade: assumption was negotiators would be closing the deal. Now trying to keep it from collapsing.
- RBA under fire for contradictory policy statement, and now getting flack for messing up money printing.
- USD/JPY to stay around 110 until we see how US - China trade talks develop
- UK data - house prices - "little sign of recovery"
- Westpac on the Australian dollar and where to short it
- Trump's Friday China tariff are not really for Friday at all ….
- China stashing away more gold - bullion reserves up for a 5th straight month
- EUR/USD - support, resistance & "potential large reversal pattern" developing
- New Zealand data - ANZ Truckometer +3.6% m/m (prior -1.9%)
- Hong Kong press: ‘No more concessions’...China playing hardball in trade war talks with the US
- More from RBNZ Gov Orr - Overnight NZD markets have behaved consistent with economic fundamentals
- Trade ideas thread - Thursday 9 May 2019
- RBNZ Governor Orr says Bank assumes export prices will hold
- Goldman Sachs continue to expect a lower US dollar in the 'medium term'
- Brexit - UK PM May office says 2nd round of talks with opposition indicates serious approach by both sides
- Headlines crossing that US Congress not likely to ratify the new NAFTA
US President Trump addressed supporters at a rally in n Panama City Beach, Florida on Wednesday evening US time. Rallies are always a precarious time to hold risk trades as Trump usually trots out the belligerent stuff to get his crowd on side. This rally was no different, Trump played tough guy, said China broke the deal and he won't be backing down.
Chinese Vice Premier Liu He is in Washington for talks again on Thursday and Friday, so if this sets the tone it is difficult to see much progress being made. How much of this is just b/s posturing is the question of course. The remarks from tariff man were enough to send risk a little lower, equity indexes were softer and in the currency space AUD was a loser (and others) while yen gained some.
China's social financing, new loans, and money supply data hit for April, well ahead of the expected release date. Aggregate financing and new loans both pulled back from an outsized result in March, but by more than expected. There has been much said about a credit-fulled bounce in China in Q1. This first data for April suggest Q2 might not get the same boost. This was a further negative for China stocks and AUD. China's PPI edged a touch higher which should give China profits a tailwind.
Otherwise, news and data flow were uneventful and currencies have had a tight range session.
Still to come:
