Forex news for Asia trading Tuesday 1 October 2019
- RBA policy announcement due at 0430 GMTGMT - 'line ball'
- Japan economy minister Nishimura says is paying close attention to sales tax hike impact
- Chinese President Xi says no force can stop China forging ahead
- Moody's expect Australian mortgage delinquencies will continue to rise over 2019
- Australia Building permits for August: -1.1% m/m (expected 2.0%)
- Today is tax hike day in Japan
- FX option expiries for Tuesday October 01 at the 10am NY cut
- Reminder - China markets closed today, there is no CNY mid rate setting today
- BOJ Tankan recap - "manufacturing gloom reaches six-year high"
- USD/JPY forecast to 102 by year end
- Japan Jibun Bank/Markit final Manufacturing PMI for September: 48.9 (prior 49.3)
- Australia CoreLogic house prices for September: +1.1% m/m (prior +1.0%)
- BOJ Tankan Q3 2019: Tankan Large Mfg Index: 5 (vs. expected 1, prior 7)
- Japan - Jobless rate for August: 2.2% (expected 2.3%)
- Australia - ANZ Roy Morgan Weekly Consumer Confidence: 114.7 (prior 110.1)
- Australia CBA/Markit Manufacturing PMI for September, final: 50.3 (prior 50.9)
- Here's a sub-60 US cent NZ dollar forecast
- Australia - AiG Manufacturing PMI (September): 54.7 (prior 53.1)
- NZD traders - take note of the poor NZIER data - prompts another bank to slash its RBNZ cash rate forecast
- NZD traders - heads up for the GDT dairy auction coming up Tuesday, London time
- Trade ideas thread - Tuesday 1 October 2019
- UK Times reports PM Johnson has asked the EU to rule out Brexit date extension
- NZ data (NZIER QSBO) just out is prompting forecasts for a near term RBNZ rate cut
- Chance of a Brexit deal by end of October low, chance of hard Brexit by end January up - thus sell GBP
- NZ data - quarterly business survey. Business confidence -35% (prior -34%)
Third-quarter business survey data from New Zealand early in the session came in weak yet again, prompting banks to bring forward rate cut calls and, a little while after release, for the NZD to drop to a fresh four-year low.
The Australian dollar dropped also, following poor building approvals data. The data from Australia today apart from this were not so bad, but weakness in dwelling approvals is going to stretch out the weakness in residential construction well into 2020 and probably beyond.
We await now the Reserve Bank of Australia October monetyary policy announcement, due at 0430GMT.
USD/JPY managed a few points higher following a disappointing Bank of Japan Q3 Tankan report (see bullets above) which had large manufacturing at its worst for 6 years.
EUR, GBP, CHF, CAD - all lost ground against the USD on the session also. Ranges were not large.
Hong Kong and China markets were shut today for National Day celebrations.
