Forex news for Asia trading Tuesday 10 March 2020
- US President Trump's coronavirus response economic package will not include travel industry for now
- China's province at the epicentre of the coronavirus outbreak considering allowing people to travel again
- China President Xi has visited Wuhan (the epicentre of the coronavirus outbreak)
- A BOJ senior official repeats the bank will not hesitate to respond as needed
- South Korean news organisation reports nearly 200 North Korean soldiers have died from coronavirus
- S&P ratings agency says the Coronavirus will add $100b in credit costs for Asian banks
- HKD - the HK 'central bank' will keep the peg stable
- White House says US President Trump has not been tested for coronavirus
- Japan finance minister Aso was asked about the potential for intervention in yen
- Bank of Japan Governor Kuroda repeats ready to steps on policy if needed without hesitation
- China Feb inflation figures: CPI 5.2% y/y (expected 5.2%) & PPI -0.4% (-0.3%)
- More on RBNZ Gov Orr comments on unconventional monetary policy
- PBOC sets USD/ CNY central rate at 6.9389 (vs. yesterday at 6.9260)
- Forex option expiries for today, Tuesday 10 March 2020 at the 10 am NY cut
- South Korea reports 131 more cases of new coronavirus, total now 7,513
- RBNZ Gov Orr says does not need to use unconventional monetary policy tools
- USD/JPY jumps again, hits above 103.50 (but I reckon there's a but …)
- Japan to announce second package of economic steps on coronavirus Tuesday afternoon
- NZ finance minister says RBNZ has room to lower rates
- Australia February business confidence -4 (prior -1) & conditions 0 (prior 3)
- Coronavirus update from China: Mainland cases up 19, deaths up 17
- Bank of Korea says will monitor FX markets closely, seek to stabilise markets
- Japan finance ministry says the US is compiling an economic package (coronavirus response)
- UK BRC Sales like-for-like for February: -0.4% y/y (expected +0.5%)
- NZ - ANZ business survey (March prelim): Business confidence -53.3 (prior -16.4)
- South Korea says it will act to address herd-like behaviour in FX markets
- US press conference Tuesday promising details of economic measures is giving some market relief.
- Coronavirus can linger in the air for at least 30 minutes and travel up to 4.5 metres
- Coronavirus - US Treas Sec Mnuchin says will meet with bank execs this week
- South Korea's fin ministry says will strengthen stocks short selling rules
- Coronavirus - US President Trump says he will hold another press conference Tuesday (US time) on economic measures
- Coronavirus - US President Trump says he will discuss payroll tax cut with Congress
- Australia weekly consumer confidence plunges again. Comes in at 100.4 (prior 104.8)
- ECB confirms a member of staff has been infected with coronavirus
- US states of New Jersey, Ohio, Rhode Island declare states of emergency over coronavirus outbreak
- Coronavirus - US CDC briefing has been pushed back to 6.30pm NY time (2230GMT)
- US is reconsidering it sale of oil from its strategic reserve
- Australian PM Morrison says the coronavirus impact on the economy may be larger than that of the GFC
- Coronavirus - The lockdown of 60m people in Italy - Germany, France, Spain (and others) to follow?
- Oil futures margins hiked
- New Zealand ANZ Truckometer February: Heavy Traffic index -3% m/m (prior +4.8%)
- Canadian fin min Morneau says Canada has fiscal space to combat coronavirus impact on economy
- Trade ideas thread - Tuesday 10 March 2020
- Coronavirus - Italian press reports Italy to extend lock down nationwide
There were recovery moves in stock markets during the session here and losses for the yen. Confounding the explanation that it was an improvement in risk sentiment were falls for AUD and NZD (EUR and GBP dropped somewhat also).
Yields on US Treasuries moved higher, indicating a diminution of fear - the yield move provided some support to the USD. Yields elsewhere also stabilised and gained a little.
Early in the session we had Italy announce a lock down for the entire country (see bullets above).
It was followed soon after buy what was the dhe dominant piece of news of the session, an announcement that there will be a briefing from the US administration on Tuesday (US time, I do not have the specific time as yet) outlining the economic relief package to be offered up. A payroll tax cut is one of the options being discussed.
Later we had Japan announce a second set of government stimulus measures would be forthcoming from there.
USD/JPY rallied strongly, up 150 points into the Tokyo fix which capped it for a few hours. Since then the gains have extended to session highs circa 103.70 as I post.
A visit to Wuhan by China's President Xi was a further positive for sentiment, if Xi is there its a good sign the situation in China is getting better.
Data flow was not a focus although I will mention a weak result for NZ business confidence and weakness also in Australian consumer and business confidence reports today. Also from NZ - RBNZ Governor Orr spoke on preparations for unconventional policy (if needed, says not so at this stage).
Regional equities:
- Nikkei: +0.57%
- Hang Seng:+1.73%
- Shanghai: +0.62%
- ASX: +1.09%
