Forex news for Asia trading Wednesday 12 December 2018
- Japan Tertiary Industry Index for October: +1.9% m/m (expected 0.8%)
- Largest Australian fund manager says RBA to slash rates to 1% next year
- Credit Agricole not convinced trade deal can be reached in 90 day, bearish on AUD
- Former Fed regional President unleashes his inner biatch!
- Gundlach recap - bond market thinks Fed isn't going to hike at all in 2019 or 2020
- 2 quick trade recommendations for 2019
- PBOC sets USD/ CNY reference rate for today at 6.9064 (vs. yesterday at 6.8996)
- Morgan Stanley warn yen is setting up for a rally
- More from Trump: Would be foolish for Federal Reserve to raise rates next week
- RBA - NAB drops its forecast for a rate hike in 2019
- More from Trump: China is buying a tremendous amount of soybeans
- Trump would intervene in Huawei CFO case if 'good for this country' (more)
- Japan Core machinery orders for October 4.5% y/y (expected 5.0%)
- Japan PPI for November 2.3% y/y (expected 2.4)
- Trump says release of Huawei CFO could be part of a trade deal with China
- Australia - Monthly consumer sentiment +0.1% m/m (prior +2.8%)
- Huawei CFO Meng Wanzhou to be released on bail
- Canada's Foreign Minister says no political interference in Huawei CFO matter
- Japan press - BOJ has bought a record amount in ETFs so far this year
- More from Gundlach: Next move in the US dollar is likely to be lower
- Trade ideas thread - Wednesday 12 December 2018
- Private oil stocks survey shows larger than expected draw in headline crude oil inventories
- Brexit - UK Cons party says will be a confidence vote Wednesday evening (UK time)
- Jeffrey Gundlach says global economic growth is slowing
The session got off to an active start with news Huawei CFO Meng Wanzhou was granted bail in Canada. 'Risk' responded only mildly. An interview with US President Trump hit news wires soon after in which the President pondered using meng as a bargaining chip in trade negotiations. Other comments from the Prez were indicative of his desire to get a trade deal done with China. Trump also urged the Federal Reserve not to hike rates this month. More in the bullets, above.
The Australian dollar saw some buyers emerge on the combined news, it traded up to just slightly above its overnight high topping circa 0.7230 before losing a few points as the rest of the session progressed. Its small pullback was accompanied by forecasts from NAB removing their 2019 RBA rate hike calls, and forecasts from Australian fund manager AMP of RBA cuts in 2019.
NZD/USD traded higher alongside, challenging but not passing 0.69 before dribbling back a few points also.
And that was it for market-impacting news for the session. Net for the day USD/JPY made a fresh high (compared to US time trade), just barely above 113.50 (its not much changed since). EUR/USD, GBP/USD both edged a few points higher. USD/CAD lost some ground as the AUD gained and has since barely retraced.
Still to come:
