Forex news for Asia trading Tuesday 2 June 2020
- Heads up for RBA announcement due at 0430GMT (previews linked in this post)
- Data from Australia just published - inventories, exports used as inputs to GDP
- PBOC sets USD/ CNY reference rate for today at 7.1167 (vs. yesterday at 7.1315)
- FX option expiries for Tuesday June 02 at the 10am NY cut
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- EUR/USD forecast from Goldman Sachs
- Australia weekly consumer confidence 98.3 (prior 92.7)
- UK is expected to signal some compromise in Brexit talks if the EU does so first
- Trump says he will deploy active duty military personnel to US cities if cities and states won't act
- New Zealand Building Permits for April: -6.5% m/m (prior -21.3%)
- New Zealand terms of trade index for Q1:-0.7% % q/q (expected +1.5%)
- Police fire tear gas, deploy flash bangs to disperse protest near White House ahead of Trump speech
- US riots - Pentagon says additional forces on alert status for deployment
- Accelerating speculation that Trump is considering imposing martial law in the US
- Trade ideas thread - Tuesday 2 June 2020
- Goldman Sachs revise their USD/CAD forecasts
- US Congressional Budget Office says economy could take 10 years to catch up after coronavirus
Politics was once again the focus with speculation rising that US President Trump would impose martial law on the country and send US troops into the streets to control the population. Trump held a press conference in the early evening in which he hinted strongly at doing so (see bullets above). For the balance of the evening the riots have subdued a little (curfews help) so perhaps the use of US military domestically will be avoided.
Across FX we have, net, seen a bit of a bounce for the USD on the session although, as is so often the case in Asia, the ranges have been only small.
On the data front there was not much to move FX. We got some 'partial' data for the Australian Q1 GDP, net negative (see bullets above) but with AUD being moved by global risk sentiment more than much else traders greeted the data with a yawn. There is an RBA policy announcement (and statement from Gov Lowe) due at 0430GMT, I suspect that'll attract further expressions of lack of interest - the RBA is on hold for a good while to come (see the previews above for more).
Bitcoin popped above the 10,000 USD mark.
