Forex news for Asia trading Wednesday 10 June 2020
- China data today signals the recovery is not strong enough to boost prices
- Oil - more on that Libya production disruption (field shut down)
- China May CPI 2.4% (vs. 2.7% expected)
- PBOC sets USD/ CNY reference rate for today at 7.0703 (vs. yesterday at 7.0711)
- FX option expiries for Wednesday June 10 at the 10am NY cut
- Air New Zealand to resume Auckland to Tokyo flights from June 25
- Australia Westpac Consumer Confidence Index for June: +6.3% m/m (prior +16.4%)
- ICYMI - South Korean central bank board member said economy could fall into Japan-like recession
- Japan Core Machinery Orders for April: -12.0 % (expected -7.0%)
- Japan PPI for May -0.4% m/m (expected -0.3%)
- Australia weekly consumer confidence: 97.0 (prior 98.3)
- More from Gundlach - says the stock market is 'lofty', fall likely
- Chinese investment to Australia expected to remain very subdued (after it more than halved in 2019)
- New Zealand data - Manufacturing Activity for Q1 flat q/q
- NZ government finances update, deficit less than forecast
- Goldman Sachs oil analyst says looking for a 15-20% price correction lower
- US coronavirus - Texas virus hospitalizations have hit their highest since the outbreak began
- US Sec State Pompeo says US stands with allies against Chinese Communist Party’s coercive bullying
- Deutsche Bank have cast further doubt on the strong US jobs figures
- Trade ideas thread - Wednesday 10 June 2020
- The Canada-US border closure has been extended to the end of July
- Private oil survey data shows large build in US crude oil inventory
- US Fauci says Covid-19 is his worst nightmare, “And it isn’t over yet.”
It was a flat-line day for EUR/USD and barely much more for other majors.
News flow was limited indeed, although coronavirus looks like it might pop back into the headlines with a record high for hospitalisations in Texas as the state reopens. Its not only Texas either, other states are seeing rises for this measure. Note that hospitalisations cannot be rationalised away as the result of more testing. If this is the beginning of a second wave (has the first wave even passed though?) it may trigger concerns of stop and start shut downs in the US, which will further damage the economy (not to disregard the human health impacts, of course) - but with any luck this hospitalisation up move will pass soon enough and the US can get back to business.
Data flow, we had a decent agenda today but mainly of non-market moving info. China inflation figures (CPI and PPI) were the main focus, with producer level inflation slumping deeper into deflation.
Across the FX board ranges were small and, as I update, not much changed net for the session.
Don't forget, its FOMC day!
- Federal Reserve FOMC meeting Wednesday - preview (spoiler - keep the change)
- The Federal Reserve decision is Wednesday: Three things to watch for
