Forex news for Asia trading Thursday, May 2 2019
- Brexit - Some encouraging economic data from the UK - growth in house-building
- USD/JPY testing its overnight highs
- NAB on the Australian dollar - targeting higher on 1 and 3 month horizons
- South Korea Foreign Minister says Trump and Kim are willing to hold a 3rd summit!
- AUD - NAB CEO has dismissed calls for an RBA interest rate cut
- Japanese PM Abe says he is open to talks with North Korean dictator Kim Jong Un
- South Korea April Manufacturing PMI 50.2 (from 48.8 prior)
- Reuters report: Canada farm minister informed that China has blocked two Canadian pork exporters
- Brexit - UK press report PM May is preparing to keep EU custom rules
- ICYMI - FOMC recap
- NZ March building permits fall from February
- More from BoC Gov Poloz - says indicators of demand are currently quite weak
- Recap of Bank of Canada Governor Poloz' comments in parliament
- AUD traders - economic activity data is improving (and what this means for the RBA on May 7)
- Trade ideas thread - Thursday 2 May 2019
- BoC Gov. Poloz speaking - much the same as testimony on Tuesday
The post-FOMC session here in Asia resulted in tight ranges across most USD pairs. USD/JPY managed to add a few points, assisting yen crosses higher.
The USD rose during the US afternoon (after falling earlier), with Federal Reserve Chair Powell sounding less dovish than most had thought he would. The moves subdued during Asia, USD/JPY the (relative) stand out with a gain of 30-odd points from early lows circa 111.35. Above 111.60 USD/JPY ran out of steam and its just under as I update. During the session we got the April manufacturing PMI from South Korea, which moved into expansion (above 50) for the first time in six months. Along with export data earlier in the week that was not as bad as expected there may be a touch more optimism for global trade going forward. If the US and China can manage to put together some sort trade deal (the US is backtracking on demands so that is making it more likely) sentiment will get another boost. Anyway, the South Korean data might have encouraged some flow into risk and away from yen ... maybe that's the narrative that'll stick for today's yen slip. Or maybe it was all just post-FOMC position flows.
EUR, AUD, NZD are all a few tics off their lows of the session, all in small ranges. Cable is up a touch also. Gold has lost a few dollars again here today.
Japanese markets remain closed, they'll reopen on Tuesday May 7. Chinese markets, nearly ditto - closed today and tomorrow and will reopen on Monday May 6.
Don't forget its Bank of England day - previews below.
Still to come:
