Forex news for Asia trading Wednesday 1 May 2019
- US FAA issues warnings to airlines re Venezuela - wants US operators out within 48 hours
- BoK Governor Lee expects economy to improve in H2 2019
- ICYMI - South Korean exports data for April fall, but not by as much as expected
- US Treasury Secretary Mnuchin on trade talks with China. Says he had a nice dinner on Tuesday.
- Expectations of a rate cut from the RBNZ have risen following the Q1 labour market report
- Australia - Core Logic house prices for April: -0.5% m/m (prior -0.7%)
- US politics - Mueller back on the headlines, says summary of his report has failed
- UK data - BRC Shop Price Index for April +0.4% y/y (prior +0.9% y/y)
- New Zealand jobs report sends the NZD down - eyes on the RBNZ for a rate cut?
- Australia manufacturing PMI for April: 50.9 (prior 52.0)
- NZ Q1 unemployment rate 4.2% (vs. expected 4.3%)
- Australia manufacturing PMI for April: 54.8 (prior 51.0)
- Overnight note on the RBA - analyst expects a cut in May, and then another two by year end
- AUD traders - overnight opinion piece from McCrann on the RBA, some back pedalling
- Trade ideas thread - Wednesday 1 May 2019
- Private oil survey shows crude oil inventories (big ) build for the week.
Japanese markets are closed all this week and they were joined today by China, Singapore and Hong Kong. Tokyo, Singapore and HK are the major FX trading centres in Asia, followed by Australia and New Zealand, the absence of the big centres left markets mainly subdued for the session.
It was left to Australia and New Zealand to deal with the data and news that we did get. Most focus was on the NZ Q1 employment report. The headline unemployment rate was a good result, but it came at the expense of a big fall in participation and other data points within the release were grim indeed; employment growth was negative q/q and wages growth came in well under expectations.
The NZD was marked lower, from above 0.6670 to (briefly) just under 0.6630 before a slow partial retrace to circa 0.6655. As I post it is back under 0.6650. AUD/USD fell alongside the kiwi, but to a small extent. It hit (again, briefly) under 0.7040 but managed to recover al of its loss and make a fresh high just over 0.7055. It is barely off its high as I update.
CAD, GBP and, EUR have gained a few points for the session against the USD. USD/CHF has had a similarly small range and is near its high. USD/JPY is a touch stronger and on its sessions high (after a small range).
Gold lost some ground, from above 1283USD it traded under 1280. Its just above the low as I post.
There were other data and news during the session (see bullets above) but nohtin of great impact.
We await Europe now .... good luck with that .... most of the continent is out on holiday also. UK markets will be up and running. US time brings the FOMC (previews below).
Coming up:
