Forex news for Asia trading Tuesday 12 May 2020
- Australian Treasurer Frydenberg says will provide an updated economic outlook in June
- Coronavirus - South Korea seeing a cluster infection linked to clubs and bars in Seoul
- More from the BOJ -
- Australia's largest ever drop in overseas visitor arrivals in March: -60% y/y
- Australia business confidence -46 (-66 prior) and business conditions -34 (-21) for April
- China April CPI 3.3% y/y (expected 3.7%) & PPI -3.1% y/y (expected -2.5%)
- More from Bank of Japan Governor Kuroda - BOJ ready to do whatever it can
- PBOC sets USD/ CNY reference rate for today at 7.0919 (vs. yesterday at 7.0769)
- FX option expiries for Tuesday May 12 at the 10am NY cut
- Unpublished US data from the White House shows coronavirus infections spiking across the US
- Bank of Japan Governor Kuroda
- China has hit four Australian meat works with import bans
- The background to Trump comments Monday on not reopening phase 1 trade talks with China
- Coronavirus - Bank of England’s chief economist Haldane warns of long-term damage to UK economy
- More from Paul Tudor Jones - bullish gold and bitcoin
- Australia weekly consumer confidence: 90.3 (prior 89.5)
- Oil update - Supply side issues continue to dominate. Demand's patchy recovery.
- Australian bank tightens credit for self-employed and people living in areas that are dependent on tourism
- Here are the 6 risks Goldman Sachs says US equity investors are ignoring
- New Zealand ANZ Truckometer for April: Heavy Traffic index: -45.0% m/m (prior -8.0%)
- Another bank weighs in against negative Federal Reserve rates
- Trade ideas thread - Tuesday 12 May 2020
- Trump says he is not in favour of reopening China trade deal
China banned imports from four Australian meat producers today in retaliation for Australian Prime Minister Morrison speaking out about wanting an enquiry into the origins and spread of the COVID-19 virus. The AUD fell, AUD/USD dropping to lows just under 0.6440 before tracking sideways for the balance of the session as I update. Moves lower at the same time came for other currencies also; NZD of course (which has subsequently retraced nearly all of its drop), EUR, CAD and GBP.
Data from New Zealand, Australia, and China today was poor, but this is now expected as the economic impacts of coronavirus bite.
Of note early in the session (but not a market mover to much extent) was US President Trump saying he did not want to have to renegotiate the phase 1 trade deal with China. This comment came in the wake of China's Global Times (often an indicator of official attitude in China) reporting overnight that China was considering redoing the whole thing. Also earlier ion the session, US media reported on data being hidden by the White House showing the virus is being spread much faster than President Trump is admitting. See bullets above for more on both of these.
Also more or less ignored were comments from Bank of England Chief Economist Haldane saying long-lasting damage could be done to the UK economy by the virus and the response. This may very well weigh on GBP going into the UK morning as it comes to notice.
The New York Fed said its Secondary Market Corporate Credit Facility will start buying ETF's tomorrow.
Ahead:
