Forex news for Asia trading Monday 15 June 2020
- China May Industrial production +4.4% y/y (expected 5.0%) & Retail sales -2.8% y/y (vs. -7.5% in April)
- China home price up 0.49% m/m in May (vs. +0.42% in April)
- PBOC 200bn yuan 1 year MLF, rate unchanged at 2.95%
- PBOC sets USD/ CNY reference rate for today at 7.0902 (vs. Friday at 7.0865)
- FX option expiries for Monday June 15 at the 10am NY cut
- Latest coronavirus outbreak in Beijing - State Council press conference cancelled
- Brexit - UK press reports PM Johnson to tell EU he wants a deal by autumn "at the latest"
- Heads up for RBA monetary policy minutes due Tuesday - QE info awaited
- Australian Prime Minister Morrison says virus will slash A$100bn from economy
- UK Times reports on a further £150 billion of stimulus expected from the Bank of England
- President of France Macron says Europe needs to be less dependent on China & US
- New Zealand data - NZ Food Price Index for May -0.8% m/m (prior +1.0%)
- New Zealand data - NZ May services PMI 37.2, up from 25.9 previously
- Tokyo reports the highest number of new COVID-19 cases since May 5
- NZ data: house prices fall m/m in May, still up y/y
- Australian Prime Minister Morrison speaking on Monday - expected to outline infrastructure spending
- Trade ideas thread - Monday 15 June 2020
- Weekend news - record number of US coronavirus cases and hospitalisations continue
- Fed's Kaplan sees 'positive' US jobs growth ahead, but a still elevated unemployment rate
- Reports that US Sec State Pompeo to meet with Chinese officials in Hawaii this week
- Beijing partial shut down imposed after new coronavirus outbreak at market
- Monday morning open levels - indicative forex prices - 15 June 2020
- This picture is the perfect metaphor for markets right now
- Rise in US coronavirus cases could unnerve markets at the open, but there are caveats
- A technical look at the major currency pairs heading into the new trading week
- MUFG trade of the week: Long USD/PLN
Early markets here to open the week saw 'risk' trades lower after a weekend of worrying coronavirus news reports, most notably:
- Tokyo reports the highest number of new COVID-19 cases since May 5
- Weekend news - record number of US coronavirus cases and hospitalisations continue
- Beijing partial shut down imposed after new coronavirus outbreak at market
AUD, EUR, NZD, GBP, CAD were all a little weaker against the USD and yen in the early hours.
The USD got another boost when Globex equity futures began trade, also lower to open the week, with oil lower also.
As I update there has been some unwind of the early forex moves. USD/JPY had a gyration or two, trading as higher as circa 107.55 (just above) and then dropping back to under 107.20. AUD/USD has remained relatively weak, it showed tentative signs of recovery but has not managed to cover its 'gap' from Friday's US timezone close. Its around the middle of its session range as I post. NZD has performed slightly better, as has cable. EUR/USD has tacked back to cross its opening gap down and is not far from its session high as I post, albeit in a narrow range.
