Forex news for Asia trading Friday 18 October 2019
- Japan finance minister Aso: When Japan needs economic support, we are ready to take fiscal measures flexibly
- More on the UK parliament Brexit vote Saturday - some numbers. Can Boris win it?
- Former NZ PM Key in the (Chinese) press - pat on the back from President Xi
- China stats bureau comments: Domestic factors underpinning growth despite rising external uncertainties
- AUD little changed on the China data - big IP beat cushioned the small GDP disappointment
- China September activity data: Industrial Production 5.8% y/y (expected 4.9%)
- China Q3 GDP 6.0% y/y (expected 6.1%)
- The Economist says UK PM Johnson needs a miracle to get the Brexit deal approved by parliament
- PBOC sets USD/ CNY reference rate for today at 7.0690 (vs. yesterday at 7.0789)
- Forex option expiries for Friday October 18 at the 10am NY cut
- NZD - BNZ have raised their forecast for Fonterra milk price
- Japan inflation has fallen to a two-and-a-half-year low
- NY Federal Reserve President Williams spoke earlier - recap
- IMF warns that while Asian central banks can maintain easy monetary policy they must also guard against excessive debt build up
- Japan inflation data for September. Headline CPI 0.2% y/y (vs. expected 0.2% & prior 0.3%)
- US Trade Rep office says tariffs on EU goods will take effect from October 18
- Recap of RBA Governor Lowe speech earlier - "talks down more rate cuts"
- Brexit vote coming up on Saturday - what it means for EUR
- More from Fed's Williams: Economy in a pretty good place, monetary policy to be set meeting by meeting
- NZD traders - here are two opposing views
- Risk for USD/CNY is back under 7
- Put this on your list for things to do Saturday - Brexit vote result!
- Trade ideas thread - Friday 18 October 2019
- NY Fed head William's Q&A: rates are low, Fed does not have much room to cut, wants fiscal support in a downturn
- RBA's Lowe warns that lower interest rates might push up asset prices rather than stimulating investment
- Fed's Williams: Balance sheet actions don't change mon pol stance
The UK parliament will vote Saturday on the deal Boris Johnson agreed with the European Union. There will be much speculation in the hours ahead of the vote of whether the PM has the numbers to get it approved and, of course, still many hours ahead of trading before the vote. Monday morning will see forex activity regardless of the outcome, with the results of the vote setting the tone for trade in the very thin Monday morning liquidity.
As for today here during Asia the focus was on the Chinese data; Q3 GDP and September 'activity data' (see bullets above for results and discussion). In a nutshell GDP came in at a small miss while industrial production came in at a strong beat, for a net positive sentiment (albeit not an overwhelmingly strong one).
AUD/USD barely moved after the data, up a few tics. NZD had gained earlier on, triggering some stop loss buying above 0.6350.
USD/JPY is net a few points weaker on the day. Japanese inflation data came in way, way below target, as usual.
EUR/USD, USD/CHF and USD/CAD are little net changed at all. Cable has drifted off , trungin down from highs not quite reaching 1.2900 to be circa 1.2850 as I post.
