Forex news for Asia trading Tuesday 12 November 2019
- More on that change of RBNZ forecast from Westpac (now expecting a rate cut tomorrow)
- China's Global Times urges the downward spiral of China-Australia relations needs to be stopped
- Japanese PM Abe says he wants extra budget to assist economic recovery
- Gold - Morgan Stanley on effect of continued progress on US-China trade agreement
- PBOC adviser urges rate cuts at the Bank, and more fiscal support from government
- New Zealand 2 year inflation expectations 1.80% (prior 1.86%)
- JP Morgan say RBA QE is coming by the end of 2020
- PBOC sets USD/ CNY mid-point today at 6.9988 (vs. yesterday at 6.9933)
- Australia Oct. Business confidence 2 (vs. prior 0) & Business conditions 3 (vs. prior 2)
- ICYMI - Chinese firm to invest £1.2bn in British Steel
- French President Macron says he spoke with Trump on phone - an excellent conversation
- NZD/USD the cheapest it has been in a decade
- Australia weekly consumer confidence 111.5 vs. 113.5 last week
- Here's a long AUD/JPY view
- US President Trump expected to delay auto tariff decision for 6 more months
- Trade ideas thread - Tuesday 12 November 2019
Yes, the focus for today in Asia fell on the New Zealand dollar and how it would respond to inflation expectations data. The RBNZ meet Wednesday New Zealand time and the further drop in inflation expectations revealed today have boosted the probability of a rate cut from the Bank at this meeting.
NZ inflation expectations data has form as a kiwi $ mover, so much so that I provided an extensive preview of it early in the session:
And another just prior to release:
NZD/USD dropped away after the data, to lows circa 0.6326 before steadying a little. Westpac published an amended forecast for the RBNZ tomorrow after the data release (WPAC had been forecasting on hold but switched that to a cut projected now) which saw the NZD retest its lows before steadying again.
A little earlier in the session we had a small bounce for AUD. The October data for business confidence and conditions improved.
Very
Very
Marginally.
To barely less awful levels.
After adding a few points a bout of sensibleness overcame the AUD market and it gave the gain back. Assisting this was a round of USD buying, with a weaker EUR, yen, CAD, amongst others. Since then we've had pullbacks, with varying results by currency. Yen, for example, remained on the weaker side. Having said this the range has been small only and its edging back towards its midpoint as I update.
Still to come:
