Forex news for Asia trading Tuesday 17 March 2020
- Morgan Stanley recommend investors should begin "legging into" US stocks
- US coronavirus package - rumours it'll be in the hundreds of billions range
- Bank of Japan 84 day lending operation - offered 30bn USD today
- China's state planner says China's economy will return to normal in Q2 2020
- Japan's Finance Minister Aso will hold a teleconference with his G7 counterparts Tuesday
- Hong Kong leader Lam says its unlikely schools in the city will resume on April 20
- Ohio will postpone Tuesday Primary election despite judges ruling
- Moody's 2020 China growth forecast is just 4.8%
- US emini S&P500 futures are trading below limit up (contains an explanation of what limit up means if you need it)
- PBOC sets USD/ CNY reference rate for today at 7.0094 (vs. yesterday at 7.0018)
- FX option expiries for Tuesday March 17 at the 10am NY cut
- BOJ additional JGB buying, in the 3-5 and 5-10 years windows
- South Korea reports 84 new coronavirus cases, total to 8320
- New Zealand announces NZD12bn coronavirus response package
- Singapore February exports, NODX -4.8% m/m (expected -3.8%)
- RBA March meeting minutes: Prepared to ease further
- House of Reps unanimously approves US coronavirus bill - sends it to the senate
- Japan economy minister says will refrain from commenting on markets, then comments on markets
- Westpac on the Australian dollar and the "collapse in the trade surplus"
- More on Mnuchin Senate meeting on more US coronavirus bailout funds
- The Philippines has suspended FX and bond trading
- Japanese business sentiment has fallen to a decade low (Reuters Tankan)
- US President Trump says will be 'powerfully' supporting airlines ... no surprise this sector will get a bailout
- Australian weekly ANZ / Roy Morgan consumer confidence falls to 100 (prior 100.4)
- Coronavirus - Australian airline Qantas will cut international capacity by 90% through to May
- The UK will unveil a 'significant financial package' to help business hit by the coronavirus outbreak
- US Treas Sec Mnuchin is meeting with Senators on boosting the coronavirus relief bill
- Coronavirus response - Ireland cash splash: 203 euro/week if in quarantine
- McDonalds says it is closing its dining rooms in US restaurants
- Boeing is in the news again for all the wrong reasons. Ratings cut, wants a bailout
- Australian fin min says stimulus needs to be scaled up
- Trade ideas thread - Tuesday 17 March 2020 - what can go green on St. Patricks Day?
- US airline industry wants a $50 bn bailout (more than twice the post 9/11 rescue)
- Spain to ban short selling for a month - no initiating, adding to, shorts
New Zealand announced a huge coronavirus package of circa 4% of GDP, a bigger spend than its combating the impact of the GFC. NZD/USD traded up on the announcement but turned down ahead of 0.6100 to be little net changed on the session as I update. AUD/USD went along for a similar pattern, trading up towards but not through 0.6150 before it too has come back to be little net changed.
Out of the US, negotiations between the US Treasury Secretary and the US Senate on the size of the coronavirus economic package for the country - with reports it'll be a "big" (according to senator Rubio, see bullets above). Talks will resume Tuesday. Overnight trade in emini S&P500 futures hit limit up at one stage during the session here on this bout of optimism. USD/JPY traded higher with the small shot of confidence (some selling of yen, CHF also) but it has retraced. USD/JPY is slightly net higher on the session.
EUR and GBP were not where the action was for the session. USD/CAD was a little lower as oil firmed a touch on the session here.
The Reserve Bank of Australia March meeting minutes (meeting on the 3rd) were out today and given global developments were a bit stale. Just this week we've had huge moves from the RBNZ and Fed (and others) so perhaps we can expect something from the RBA prior their scheduled April 7 meeting. The Bank has said they'll make an announcement on Thursday this week so perhaps we'll see a rate cut and maybe even some form of QE (this has been hinted at).
Perhaps a little under the radar, the Philippines announced it was closing the stock exchange, forex, and bond trading (see bullets above - and adding, later information says a reopening is scheduled for Thursday). There has been chatter that major economies may do something similar (unless there is a turn around soon) - something to take note of. When investing or trading any financial instrument there is always risk involved, these (potential) moves to limit the downside, well maybe they'll enhance confidence, but maybe along with research for a cure for this virus we can get something to fix squeamishness as well?
