Forex and Bitcoin news for Asia trading Monday 1 October 2018
An agreement as announced on a new Nafta deal for the US, Mexico and Canada. So fare all of the details have come from unnamed sources. Canadian Prime Minister Trudeau did say, after the deal was announced, that is was a good day for Canada and that he would give details Monday. It was after 11pm east coast time when he left a cabinet meeting so I guess wanting to leave the details 'til Monday is fair enough.
I would urge a little caution on this deal. It is described as a framework deal. I am not sure what 'framework' means. Canadian press goes further, saying its a 'tentative' deal.
What has come out (again, this only via unnamed sources), in brief:
- Trump signed off on the agreement
- Chapter 19 dispute settlement provision preserved, as are protections for Canadian cultural industries
- American farmers can sell more dairy products into Canada'
- Three sources said a side agreement, meanwhile, would see American tariffs lifted on Canadian steel and aluminium, and a guarantee the Trump administration will not impose tariffs on most auto imports from Canada. In exchange, however, Canada would accept a quota system that would place stricter limits on the export of Canadian-made vehicles into the U.S. market (via Globe and Mail, linked in post, bullet below)
USD/CAD opened lower in very Asia, settling around 1.2850 until the news hit on the deal reached, when it fell under 1.2820 briefly.before coming back above 1.2830.
It was a Nafta focus session, the posts in order (read from the bottom up)
- Canada press on the new Nafta: a tentative deal
- Canada source says Chapter 19 dispute resolution mechanism to stay unchanged
- What is next on Nafta - White House announcement due soon
- CAD official says Nafta framework involves offering more dairy access to US farmers
- Canada media says Nafta deal has been reached
- US official says the US and Canada are very close to reaching Nafta deal
- Canadian foreign minister Freeland has cancelled her planned address to the UN Monday
- Nafta deal: Unnamed sources say US, Mexico and Canada agreement in the works
- Canada's MacNaughton says Nafta talks making progress, not there yet
- Canada and US on the cusp of NAFTA deal - report. USD/CAD drops
- Sticking points remain in NAFTA deal with the FX market set to open
- US and Canada poised to finish NAFTA deal this weekend - report
Elsewhere:
- China has cancelled security talks with the US
- New Zealand Monthly Economic Indicators for August 2018
- Some Australia data while we wait for Nafta news: monthly inflation out now
- Canadian foreign minister Freeland has cancelled her planned address to the UN Monday
- Japan Nikkei Manufacturing PMI for September (final): 52.5 (flash was 52.6)
- Australia data: CoreLogic house price index down 0.6% m/m
- BOJ Q3 Tankan: Large Manufacturing Index: 19 (expected 22)
- Morgan Stanley and the yen: "Japan is changing after three decades of weak GDP growth"
- Australia AiG Manufacturing PMI September: 59.0 (prior 56.7)
- Here are the BOJ Japanese Government Bond buying plans for October 2018
- Weekend Italy politics and budget … "Tricky stuff"
- Bloomberg on the CAD: 4 month high as Nafta deadline looms
- China PMIs hit over the weekend, recap
- On the data calendar today - Bank of Japan Tankan for Q3
- ECB's Coeure weekend comments - expects rates unchanged through summer of 2019
- Trade ideas thread - Monday 1 October 2018
- Monday morning forex opening price indications - 1 October 2018
- Typhoon Trami set to hammer Japan
- China September manufacturing PMI 50.8 vs 51.2 expected
- Theresa May continues to face an impossible task
- Attention London forex and crypto traders
- Fed's Williams: Neutral rate less relevant as policy normalizes
USD/JPY headed higher on the session without any clear catalyst - a continuation move. Japanese exporters sit with clusters of sell orders around 114 now.
AUD, EUR, GBP, CHF, NZD all showed not too much movement.
Australian monthly inflation data shows COPI sitting near the bottom end of the RBA band. Not a concern for the central bank ahead of tomorrows policy meeting (preview below)
It was a market holiday in China, HK and Sydney today.
Still to come:
