Forex news for Asia trading Tuesday 16 June 2020
- BOJ maintains its policy setting unchanged
- Trump is considering a further 1tln in economic stimulus - infrastructure spending
- South Korea exchange triggers its 'sidecar' (yes, sidecar)
- US dollar crash is virtually inevitable says Stephen Roach
- RBA June policy meeting minutes affirm policy support will likely be need for some time
- PBOC sets USD/ CNY reference rate for today at 7.0755 (vs. Monday at 7.0902)
- FX option expiries for Tuesday June 16 at the 10am NY cut
- ICYMI - US Commerce Department says US firms can work with Huawei on 5G standards
- AUD/USD forecasts (and support/resistance)
- ICYMI - China will likely ease the pressure on local governments to shut older, inefficient coal mines
- Coronavirus - Beijing bans residents with high virus risks from leaving city
- Australia weekly consumer confidence: 97.5 (prior 97.0)
- More rumour of US Sec State to meet with China's top foreign policy official on Tuesday
- Two rockets have hit near Baghdad's international airport
- 12 more areas in Beijing have been upgraded to risk areas in the new coronavirus outbreak
- Here's more on North Korea's threat to re-enter disarmed border areas
- UK will begin human testing another coronavirus vaccine this week
- Fed says it'll expand its "main street" lending program even further - to provide credit access for non profits
- North Korea military says it will re-enter areas disarmed under inter-Korean agreement
- NZ data - Q2 consumer confidence drops to 97.2 from 104.2 previously
- Trade ideas thread - Tuesday 16 June 2020
- Coronavirus - Some Remdesivir news crossing - FDA warns on reduced effectiveness
The strong gains on US equity markets on Monday carried on during the session here. Local shares opened higher (of course) and consolidated the higher prices. US equity index futures trading on Globex carried on higher also.
The encouraging risk sentiment translated into a weaker USD against t major currencies, EUR, GBP, AUD, NZD all gaining as did CAD and gold. USD/JPY initially popped a little higher but found willing sellers circa 107.50, it slipped slightly to under 107.25. After the BOJ statement (see bullets above) USD/JPY tracked back toward its earlier high, the sellers seen earlier had dispersed by then!
News flow of note:
- coronavirus cases in Beijing mounted, as did renewed (limited) lock down measures in the China's capital.
- more supportive were signs of a thawing in the US-China chilled relationship with a dialling back of restrictions on Huawei, further talk of Pompeo to meet with his Chinese counterpart this week (see bullets above for more on each of these) as well as the US Department of Transportation saying it would permit four round-trip flights a week by Chinese airlines (this is double the level it had set earlier this month).
- The Bank of Japan policy meeting concluded (see bullets above)
