Forex news for Asia trading Tuesday 21 July 2020
- The EU leaders meeting on the recovery fund has recommenced (again)
- RBA Governor Lowe is speaking at the top of the hour - live link
- Goldman Sachs says if you like fading crowded trades you may be plain out of luck
- Australia coronavirus lock down in Melbourne - consumer spending evaporating
- Japan economy minister Nishimura - coronavirus panel to meet Wednesday afternoon
- Australia has extended its income support scheme but at reduced, and tiered, rates
- RBA July meeting minutes - Easy policy to stay as long as needed
- PBOC sets USD/ CNY reference rate for today at 6.9862 (vs. yesterday at 6.9928)
- FX option expiries for Tuesday July 21 at the 10am NY cut
- Australia coronavirus - Victoria state new cases up 374 on the past 24 hours
- Citi's 3 reasons for buying gold
- South Korea first 20 days of July exports down 12.8% y/y
- Australia says mining, energy sectors underpinning the domestic economy due to demand from China
- CanSinoBIO (a coronavirus vaccine contender) says no serious adverse reaction to its vaccine trial
- Japan data for June, headline CPI 0.1% y/y (expected 0.1%)
- Australia weekly consumer confidence: 90.7 (prior 91.6)
- Australia coronavirus - chatter is the state of Victoria number today will be circa 375
- Final round of Brexit talks in mid-August - chances of a deal fading fast, 3 key disagreements (and GBP outlook)
- ECB's Schnabel says balance of risks still towards the down side
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- EUR traders - Rumour out of the EU summit is a deal is "imminent"
- More on that Australian consumer spending data - the lock down state lags badly
- LA County & Texas coronavirus cases up a combined +10K
- Australia data snippet - card spending on the week bounced 11.4% y/y
- Heads up for a Tuesday report to come on NVAX Covid19 vaccine news (but no data)
- EUR/USD forecasts raised - 4 positives for the pair (and the negatives!)
- Trade ideas thread - Tuesday 21 July 2020
- Mexican economy minister says actively seeking companies to relocate from China
Upbeat sentiment drove the US dollar lower during Asia, albeit not large moves. AUD, GBP, EUR, even yen and CHF gained a little. For the EUR there was an early rumour that an EU Recovery Fund deal was 'imminent' but, so far at least, that seems to have gone nowhere. As I update EUR/USD is tickling its week hiogh just above 1.1460.
Cable and AUD/USD gained at a decent clip, while USD/CAD fell alongside.
NZD/USD has been a laggard, popping higher but giving it back with no clear catalyst evident. There has been some AUD/NZD buying - RBA minutes indicate a Bank that appears happy to allow current settings to play out and be assessed but I did not note in the post that the meeting was held before one fifth of the country (population and economy) was plunged back into lock down by the resurgence of COVID-19 cases in Australia's second largest city.
Still to come is Reserve Bank of Australia Governor Lowe speaking and we might get a bit more of an update on Banks views in light of the new developments from him.
Coming up (link in post above)
