Forex news for Asia trading on Tuesday 1 June 2021
- Japan capex data out earlier - recap - firms hoarding cash?
- Forecasts for Chinese yuan raised for Q2, Q3 2021
- China data - Caixin manufacturing PMI for May 52.0 (vs. expected 52.0)
- Australia Net exports -0.6% of GDP (vs. expected -1.2%, prior -0.1%)
- Australia Building Approvals for April -8.6% m/m (expected -10.0%, prior +17.4%)
- PBOC sets USD/ CNY central rate at 6.3572 (vs. yesterday at 6.3682)
- Japan to widen vaccine sites to workplaces, universities
- AUD/USD continues its move higher - iron ore in China is up on the steel news
- The PBOC raised its FX reserve requirement ratio from 5% to 7% - may not impact yuan rise
- Jibun Bank/Markit Manufacturing PMI (final) for May 53.0
- Toyota and Honda will shut down local production on Tuesday as Malaysia enters lockdown
- Australia CoreLogic house prices for May +2.3% m/m ( prior +1.8%)
- RBA policy meeting due today - preview ... but the next day may be more important
- South Korea exports continue their rocketing surge (May data +49% y/y)
- Japan data - capex and profits for Q1 2021
- AUD rising in early Asia trade - China easing some emission controls
- Australia weekly consumer confidence: 111.4 (prior 114.2)
- South Korea's Vice fin min says the chances of annual inflation above 2% are limited
- Australia - Markit Manufacturing PMI for May (final) 60.4 (vs. prior 59.7)
- Coronavirus Melbourne (Australia) lockdown - new locally transmitted cases nearly double overnight
- New Zealand Building Permits for April +4.8% m/m (prior +17.9%)
- Australia manufacturing PMI for May 61.8 (prior 61.7)
- Did the Reserve Bank of India 'pump' the price of Bitcoin on Monday?
- Germany set to ease COVID-19 restrictions as infections fall
- Russia has resumed flights to the UK - cites improved COVID-19 situation
- NZD traders - heads up for the GDT dairy auction coming up Tuesday 1 June
- Trade ideas thread - Tuesday 1 June 2021
- Coronavirus update - International incoming flights to Hanoi, Vietnam to be suspended for a week
- A coronavirus ICYMI - China first lockdown since January - Guangdong / Guangzhou partial lockdown
During the US holiday the USD lost ground with currencies higher pretty much across the board. There was some continuation of this move during the Asian timezone here today most notably for AUD and GBP which both added solid gains. I posted on moves from China to relax emission rules on steel production (see bullets above) which gave iron ore (and AUD) a boost. GBP didn't seem to need any news for its rally.
Yen, too, moved higher against the dollar, USD/JPY testing back towards its US time lows. The People's Bank of China set its reference rate at the highest (for the CNY) since May 15 of 2018.
On the data front we had plenty of manufacturing PMIs published for May out of Australia, China and across Asia, solid expansions indicated for many. Further data from Australia provided 'partial' indicators for Q1 GDP which is due tomorrow. Expectations are for around +1% q/q growth for the economy in the first quarter.
On the coronavirus front the news was not so encouraging, further restrictions continue in many Asian countries (see bullets above). On the other hand European countries are seeing some relaxation.
Gold and oil rose. Bitcoin pushed towards US$38K but has come back a little since.
We await the Reserve Bank of Australia policy decision and Statement from Governor Lowe due at 0430GMT:
- AUD traders - RBA policy meeting today, preview - "risks skewed towards a hawkish shift"
- RBA monetary policy meeting Tuesday 1 June 2021 - preview - no fireworks
- it will be difficult for the RBA to appear as hawkish as the RBNZ
- RBA policy meeting due today - preview ... but the next day may be more important
Cable to its highest since April of 2018:
