Forex and Bitcoin news for Asia trading Wednesday 11 July 2018
- What does England soccer, NBA basketball and Forex trading have in common?
- One for US soybean farmers: Brazil beans now much cheaper in China
- US Brady says Trump and Xi should meet on trade, make a fair deal
- Xinhua: PBOC adviser says China will consider counter measures
- China Fin Min official says US is escalating trade tension
- Australia Home loans (May): +1.1% m/m (vs. expected -2.0%)
- PBOC sets USD/ CNY reference rate for today at 6.6234 (vs. yesterday at 6.6259)
- Australia Westpac Consumer Confidence Index (July): +3.9% m/m (prior +0.3%)
- Japan data: PPI 2.8% y/y, in line with expected 2.8%
- Japan data: May Core Machinery orders -3.7% m/m (expected -4.9%)
- Nothing from China yet on tariff retaliation, but yuan speaking loud … CNH down the shaft
- About that 'sell the fact' on the CAD after BoC … wait one … buy it says this guy
- TD warned CAD a sell after BoC meeting - entered long USD/CAD position
- US Trade Rep says US will impose 10% tariff on additional $200bn China goods
- US Government announcement on the next $200bn China tariffs hitting now
- US admin official says additional $200bn tariff list on China likely in hours
- US admin manipulating the markets? Tariff news came at most impactful time
- US is said to be about to release $200b China tariff list
- Trade ideas thread - Wednesday 11 July 2018
News came early in the session (very late New York trade) that the US was to announce a further $200bn in additional tariffs on China made goods. The news first hit from unnamed sources but was soon confirmed by an administration official. The list of products (it includes imported badger hair, in case you were wondering, I know it was my first question. Still, if that what it takes to MAGA I guess its a good thing) was announced in rapid time soon after.
This is a significant ratcheting up in the trade war.
The market response was instant, with 'risk' lower and flows into the yen. Yen crosses were thus hit hard, AUD/JPY a notable loser. Offshore yuan took a hit too.
There was follow through selling, taking USD/JPY to circa 110.80 and AUD/USD circa 0.740 before support was found.
Stock markets were hit, of course, both overnight trade on US stock indices and elsewhere.
USD/JPY (and yen crosses to some extent) recovered somewhat with hat so far has been an attempted 'gap fill' style bounce (USD/JPY to highs just above 111.10 on the bounce).
The tariff news was the big item today. China has so far not announced any retaliation but I guess that'll come.
In other items, some decent data from Australia today, with a big jump in consumer confidence and a positive for home loan data.
Still to come:
