Forex news for Asia trading on Friday 19 November 2021
- 3 reasons yen will remain under pressure
- Tesla has raised the price of some Model 3 vehicles in China
- Goldman Sachs says an oil reserve release is fully priced in
- US negotiating a co-ordinated oil reserve release, but Asian reserves are low
- New Zealand data - Credit card spending (Oct) +8.4% m/m (prior -3.3%)
- US Federal Reserve speakers coming up on Friday - Clarida, Waller
- RBNZ monetary policy meeting next week - rate hike baked in - preview
- ICYMI - S&P on China Evergrande, says it believes default still 'highly likely'
- PBOC sets USD/ CNY reference rate for today at 6.3825 (vs. estimate at 6.3780)
- Japan PM Kishida says the total size of stimulus package is 79 tln yen
- Reuters poll shows the Federal Reserve is expected to raise rates by 25 bps in Q4 2022
- UK data - GfK Consumer Confidence for November -14 (expected -18, prior -17)
- Comments from China Beige Book - see Evergrande as contained
- Japan CPI for October: Headline 0.1% y/y (vs. expected 0.5%)
- China is examining ways to cut taxes and government fees by up to 500bn yuan
- US CBO says Biden's spending bills will add $367bn to the budget deficit over a decade
- CBA raise their forecasts for AUD/USD, citing quicker progress on vaccinations
- ICYMI - CEO of Ford says plans to (at least) double electric vehicle output by end-2023
- Fed's Bostic says he expects mid-2022 normalisation of policy
- ICYMI - Paypal giving crypto some love - new app enables payment
- Trade ideas thread - Friday 19 November 2021
- ICYMI - Kremlin says Nord Stream 2 has met all requirements to receive a German licence
- South Korean wholesale inflation (PPI data for October) hits its highest in 13 years
It was a sedate session in Asia for major FX rates with some USD strength evident against yen, EUR, GBP, AUD and CHF. Some of the moves were tiny, others small only. EUR/USD, for example, is around 15 points lower from its late US-time level.
CAD was fairly steady, oil prices gained, which assisted. NZD/USD was steady also. The Reserve Bank of New Zealand monetary policy meeting is next week, on Wednesday the 24th; a 25bp rate hike is baked in. Although I'd suggest 50bps is not on the agenda it would be remiss not to mention that market pricing is not dismissing the prospect. I'll have more to come on the RBNZ next week.
In Japan, Prime Minister Kishida set out the new stimulus program, with around half a trillion USD equivalent of new fiscal spending. In China, reports are that the government is looking at ways to cut taxes and fees by around 500bn yuan. Biden's Build Back Better plan was debated in the US Congress.
BTC slipped a little further:
