Forex news for Asia trading on Tuesday 31 August 2021
- Economic calendar due from the US Wednesday 1 September 2021
- China Caixin Manufacturing PMI for August 49.2 vs. expected 50.2, prior 50.3
- BOJ Dep Gov says the Bank does not want to destabilise the yen
- Australia avoids a double-dip recession. Q2 GDP +0.7% q/q (0.5% expected).
- PBOC sets USD/ CNY central rate at 6.4680 (vs. yesterday at 6.4671)
- New Zealand confirms 75 new cases of COVID-19
- Coronavirus - 1116 new daily COVID-19 cases for Sydney / NSW (Australia's largest population city and state)
- Markit ASEAN Manufacturing PMI: 44.5 in August (prior 44.6)
- Japan's PM Suga says can't dissolve parliament amid the severe coronavirus situation
- Japan Jibun Manufacturing PMI for August 52.7 (vs. prelim 52.4, prior 53.0)
- Australia business confidence (Roy Morgan survey) for August -13.4% m/m, +18.1% y/y
- South Korea exports up 29% y/y in August (per working day)
- Japan Q2 capex +3.2% q/q and +5.3% y/y
- China private survey manufacturing PMI data due today - how its different to the official PMI
- Coronavirus - confirmed surge in new cases today for 2nd largest population state Victoria
- UK data - BRC Shop Price Index for August: -0.8% y/y (prior -1.2%)
- Australia - Markit Manufacturing PMI for August (final) 52.0 (vs. prelim of 51.7, prior 56.9)
- Australia - AiG Manufacturing PMI for August: 51.6 (prior 60.8)
- US Congress to investigate risks related to Chinese stock market listings on American exchanges
- Trade ideas thread - Wednesday 1 September 2021
- Private oil survey data shows large headline draw in crude oil inventory
It was a data-heavy day. The two items of most focus were the Australian second-quarter economic growth report:
- a beat at +0.7% q/q (see bullets above for more)
and the private-survey China manufacturing PMI (Caixin/Markit)
- which missed and slid into contraction at 49.2 (see bullets above)
News flow was light. The COVID-19 situation in Australia and New Zealand deteriorated yet again with locally transmitted case counts rising on a bounce-back in numbers for Victoria and NZ (again, see bullets above for more). An October data for the Japanese general election seemed to firm up a little with PM Suga hinting an earlier poll is not his plan.
Central bankers were mainly quiet during the session, with only a speech from Bank of Japan Deputy Governor Wakatabe. The People's Bank of China drained funds from the banking system today after a run of days where they added.
USD/JPY has risen on the session, only 20 or so points to 110.20 and just above. USD/CHF higher too. EUR/USD & GBP/USD declined slightly, as did CAD while NZD/USD and AUD/USD are not too much changed after some range trading.
Regional equities:
Japan's Nikkei +1.08% to a 6 week high
China's Shanghai Composite -0.29%
Hong Kong's Hang Seng -0.1%
CHF lost more ground:
