Forex news for Asia trading Thursday 2 April 2020
- US Jobless claims data due Thursday - Goldman Sachs forecasts 5.25m
- RBA meet next week - April 7 - preview (spoiler, likely to sit on their hands)
- Reuters report US banks threaten not to participate in the small-business rescue program
- PM Morrison says virus spread is slowing in Australia
- Los Angeles Mayor recommends everyone wear masks while in public
- Moody’s lowers its outlook for Australia’s banking system to negative from stable
- PBOC sets USD/ CNY reference rate for today at 7.0995 (vs. yesterday at 7.0771)
- FX option expiries for Thursday April 02 at the 10am NY cut
- The Fed still has not directed banks to suspend shareholder payouts - but here's a central bank that has
- Australia, Q1 business confidence (National Australia Bank survey): -11 (prior -1)
- US Treasury yields in Asia trade hitting 3 week lows
- Reports that the US is tightening rules to prevent China obtaining advanced US technology
- US Senate Republicans say Congress may need another coronavirus package. But not yet.
- US vehicle sales in March 11.37m vs. 16.83m in Feb
- More on the Fed easing liquidity/credit constraints
- Trump says he will meet with oil companies on Friday
- US coronavirus - President Trump says considering cancelling flights to hotspots
- UK coronavirus news - British Airways expected to stand down 36,000 staff
- US Energy dept. says its frustrated by Russia, Saudi boosting oil output
- US National Security Adviser says US working to address oil market volatility
- Australia - NSW lockdown laws due to coronavirus will last 90 days
- Coronavirus - The Pentagon is seeking 100,000 more body bags for FEMA
- ICYMI: "Up to now we've never had a successful vaccine against a coronavirus"
- Trade ideas thread - Thursday 02 April 2020
The Reserve Bank of New Zealand instructed commercial banks to halt dividend payments today, until further notice and the US Federal Reserve eased capital requirements for large banks (see bullets above for more detail on both of these).
The Fed move is another policy aimed at supporting liquidity in the banking system, the announcement came in the wake of steep losses for US equities on Wednesday that followed a White House projection of up to 240,000 coronavirus-related deaths ahead for the country,
Moody's were on the case today, downgrading their outlook for the Australian banking sector to negative, but Australia was not the only one, also set to negative were the banking systems of China, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, Vietnam.
Currency movement was less than we have become accustomed to recently. USD/JPY moved above 107.50 at one stage while EUR/USD has dribbled down under 1.0940.
Cable traded above 1.240 but is under and little net changed on the session as I update.
Oil moved net higher on the day while CAD is nevertheless little net changed. Gold lost a few dollars.
