Forex news for Asia trading for Thursday 17 December 2020
- Bitcoin climbs above $22,000
- US COVID-19 economic relief deal, negotiations continue - where we are at
- ICYMI - Germany has given tentative support to Huawei on 5G network
- Japanese media report that Tokyo is set to raise its virus medical alert to its highest level
- Australian Treasurer Frydenberg says trade issues with China are very serious
- Australian budget update issued: GDP forecast rising 4.5% in 2021
- Australian Treasurer Frydenberg says economy is rebounding strongly
- NZ finance minister says NZD gains reflect the strength of the local economy
- Singapore exports (NODX) y/y drop again in November
- PBOC sets USD/ CNY reference rate for today at 6.5362 (vs. yesterday at 6.5355)
- FX option expiries for Thursday December 17 at the 10am NY cut
- Australia jobs report (Nov.): Employment +90K (expected +40K) & Unemployment rate 6.8% (expected 7.0%)
- The White House has convened urgent meetings re the breach of US government computer systems
- BOJ monetary policy statement due Friday - preview
- The Bank of England and Swiss National Bank both have monetary policy meetings Thursday 17 December 2020
- US Senate leader McConnell says 'still talking' about coronavirus spending bill
- US VP Pence plans to receive televised COVID-19 vaccine on Friday morning
- US FDA welcomes extra doses of Pfizer COVID-19 vaccine, sees potential 40% boost to supply
- US Trade Rep Lighthizer urges new President Biden to not ease tariffs on China
- Fundamental valuation of Bitcoin is USD 400,000
- UK press reports that the south of England is about to go into the strictest UK lockdown tier
- Goldman Sachs summary of the FOMC statement
- Downside for cable may be limited to 1.25, upside limited to 1.36
- New Zealand Q3 GDP: +14.0% q/q (sa) (expected +12.9%)
- Trade ideas thread - Thursday 17 December 2020
- Citi recommends a long AUD/JPY trade
- Mixed ending for the major US indices today
Currencies gained against the USD but crypto BTC stole the show, adding to its gains to trade above USD22,000 at one stage during the session.
News flow during the session was lacklustre, there were no US stimulus negotiation developments to speak of and little else to note either. Data, on the other hand, did prompt some forex movement. New Zealand Q3 GDP came in at a beat on expectations and confirmed economic growth in the country is now above the same period last year. New Zealand dealt extremely competently with the coronavirus outbreak in the country and this does appear to have provided the base for economic growth. The NZD traded to a high around 0.7140.
Also on the up today is the Australian dollar. The November employment report showed another strong beat on job gains and the unemployment rate dropped back despite the pariticipation rate moving higher to equal highest pre-covid levels. There is still work to do getting the jobless rate lower and wages growing but so far there is some encouragement.
EUR/ and GBP/USD are net higher on the session also, as is CAD against the dollar. Yen and CHF also.
