Forex news for Asia trading Wednesday 18 December 2019
- PBOC adviser sounds warning on systemic risk chain reaction on local government debt
- "Confidence among Asian businesses rebounded sharply this quarter to hit an 18-month high"
- More on that PBOC rate cut (to the 14-day RR)
- Japan chief cabinet secretary Suga: Russia seized 5 Japanese fishing vessels
- Another forecast of an RBA rate cut to come - maybe as low as the lower bound 0.25%
- Boeing's cut of 737 Max production to slice US GDP growth
- PBOC sets USD/ CNY reference rate for today at 6.9969 (vs. yesterday at 6.9971)
- ICYMI - Japan to cut its issuance of JGBs in 2020
- Westpac: RBA will cut the cash interest rate in February 2020, from 0.75% to 0.50%
- Japan data, November exports -7.9% y/y vs. -8.9% expected
- Goldman Sachs also wary on being bearish US dollar
- Japan earthquake, magnitude 5 on japan 7 point scale - near Okinawa
- Australia - Westpac's leading indicator for November: -0.09% m/m (prior -0.07%)
- CS says the Swiss franc is overvalued, assess fair value for EUR/CHF around 1.22
- NZ government announce a lift in the minimum wage
- Goldman Sachs on the RBA - see a good chance of a rate cut in February 2020
- Top foreign-exchange forecaster on H1 2020 - bull market for the USD not over
- Former BOJ official says its difficult for BOJ to say there is momentum toward the 2% inflation
- US government weighing new limits on sales of chips, other components to Huawei
- Trade ideas thread - Wednesday 18 December 2019
- NZ data - current account deficit
- Private survey shows oil stockpiles build (draw was expected)
- Fitch Ratings affirms UK at 'AA' - highly likely UK leaves EU with an agreement on Jan 31 2020
- S&P issues revised outlook for UK, to stable. Ratings affirmed.
Russian authorities seized five Japanese fishing vessels (happened on the 17th, reported in Japan today) which may have prompted some of the move lower for yen crosses. The moves were small and may well have been related to other factors (flows, impeachment vote in the US to come Wednesday evening, US time). Regardless, the moves have been small only.
10 or so point losses for EUR/USD, cable, AUD/USD, NZD/USD combined with a small dip in USD/JPY only. USD/CHF is more or less steady on the session while CAD lost a few points.
News and data flow was light.
The People's Bank of China kicked in with a small stimulus today, lowering the interest rate on 14 day reverse repos (at its open market operation today, the first for 20 days) by five basis points. A small move only, but it raises thoughts there may be a lower prime rate set at the monthly fix coming on Friday.
Meanwhile the Chinese city of Dalian has begun the troll campaign ahead of any 'phase two' trade talks … will they touch on IP issues?
Srsly chaps, really?
Still to come:
