Forex news for Asia trading Tuesday 2 July 2019
- China's Premier Li Keqiang again - will use RRR cuts and lower rates for help small firms
- China's Premier Li Keqiang says China will not resort to yuan devaluation
- China's Premier Li Keqiang - world economic risks rising, global trade slowing
- Reuters: Australian government close to securing enough votes for $110 billion tax cut plan
- China says scale of firms moving supply chains out of China is small
- We have a new guy to watch for signs of BOJ intervention in the yen
- More on the BOJ survey on inflation expectations after Six years of stimulus
- ICYMI: Italy lowered its 2019 budget deficit - a bid to comply with EU rules
- PBOC sets USD/ CNY reference rate for today at 6.8513 (vs. yesterday at 6.8716)
- Here are 3 signals to buy stocks - worsening stagflation, currency depreciation, comprehensive US sanctions
- FX option expiries Tuesday 2 July 2019 at the 10am NY cut
- Morgan Stanley on the NZD - time to buy
- Japanese firms' outlook for CPI - expect it around 1% for the next 5 years
- Australia weekly consumer confidence rises to 118.9 (prior was 114.3)
- NZD traders - heads up for the GDT dairy auction coming up Tuesday London time
- More details on the US proposed extra tariffs on EU goods
- NZ building permits for May: +13.2% m/m (prior -8.0%
- US proposes adding more tariffs to $4bn of EU goods
- NZ data - NZIER business opinion survey: business confidence index falls
- Trump - Iran is playing with fire. China trade talks are already underway.
- Trade ideas thread - Tuesday 2 July 2019
- Saudi Energy Min says Saudi will produce less oil than Its OPEC quota
We'd been waiting for the pressure to come off the yuan since the trade truce was announced and the PBOC gave some joy with a revaluation of the onshore yuan at the reference rate setting today. It wasn't enough for offshore yuan traders though, USD/CNH traded up after the announcement.
Gold buyers liked it though, XAU/USD came off its session lows to move above $1,390.
AUD was a beneficiary also, from circa 0.6965 toward 0.6980. Speaking of AUD, we are awaiting the Reserve Bank of Australia monetary policy decision due at 0430GMT. A rate cut today is widely, although not unanimously, expected. There is scope for an AUD move higher should the RBA decide to keep the cash rate on hold. FWIW I think they'll cut.
Earlier, in pre-Tokyo morning trade, we had news cross that the US Trade Representative is proposing more tariffs on goods from the European Union. This would add to tariffs already announced and is response to subsidies the Union provide to aircraft manufacturing. EUR took a small tumble on the news crossing, and accompanying (albeit small) flows into yen (USD/JPY from above 108.40 to circa 108.30) took EUR/JPY under 122.20 before a bounce as the session wore on.
NZD has traded a little higher, helped along by the slightly firmer AUD and also a good building permits data release. Cable is little changed, as is USD/CHF and USD/CAD.
Stay tuned folks:
