Forex news for Asia trading Monday 22 June 2020
- RBNZ monetary policy meeting this week, preview (spoiler: "unexciting")
- ANZ calculate AUD/USD fair value at 0.6700
- Wirecard update - nearly 2bn EUR in account balances "likely do not exist"
- PBOC sets 1 year rate at 3.85%, as expected, and 5 year 4.65%, as expected
- India and China are still in a tense stand off - rules of engagement do not prohibit firearms use
- PBOC sets USD/ CNY reference rate for today at 7.0865 (vs. yesterday at 7.0913)
- FX option expiries for Monday June 22 at the 10am NY cut
- More from RBA's Lowe - Virus will impact on world economy for years to come
- RBA Gov Lowe says would like to see a lower AUD at some point, not a problem now
- South Korea 1st 20 days of June exports -7.5% y/y
- China PBOC interest rate decision due Monday 22 June 2020 - preview (on hold expected)
- Trump to order new restrictions on H-1B visas by Monday
- RBA Governor Lowe's panel appearance begins at the top of the hour - live link
- The RBNZ 'shadow board' (NZIER) continues to favour further QE over a negative OCR
- US media report that Trump held off on Xinjiang sanctions for China trade deal
- US index futures are open for the week's trade on Globex, S&P eminis down half a percent
- UK to further ease coronavirus lockdown restrictions on Tuesday
- Trade ideas thread - Monday 22 June 2020
- Weekend news - UK terrorist incident, 3 dead
- Bundesbank head Weidmann believes the worst of Germany's economic slump is past
- Coronavirus reproduction rate in Germany jumped to 2.88 on Sunday
- Italy is close to approving 6.3b EUR crisis loan (bail out) of Fiat Chrysler
- White House trade adviser Navarro says preparing for a second wave of coronavirus
- Monday opening FX rates - foreign exchange prices, early indications
- US reports 32,411 coronavirus cases vs 34,284 a day ago
- US coronavirus cases rise 1.6% vs 1.2% seven-day average
- Can the US dollar disconnect from the risk trade?
The headline to this post has been good for about a decade, still serving well.
Coronavirus and its impact on economies across the globe was front and centre again over the weekend news with a worsening situation in the US, the German R rate heading higher, and a loosening of restrictions in parts of Australia being wound back. There were some less bad reports out also, Italy is getting closer to bailing out Fiat, the UK is easing restrictions further, the BUBA head thinks the worst of the economic trough in Germany is passed. But, it was the negatives that grabbed the market attention. Risk currencies gapped lower in the early hours of the week.
Soon after Globex began to trade, with lower equity indexes.
However, the risk weakness did not last. Currencies covered their various gaps and continued to add gains, albeit small.
USD/JPY is a little shy of 107 as I post. AUD/USD is nudging above 0.6850. We had comments out from RBA boss Lowe earlier, he said he'd like a lower AUD but didn't see that happening soon and the fact that it is rising right now is not a problem. NZD is a boss, up 50 or so points from its early lows. EUR, GBP higher also.
Gold has had a good session, it was above 1755 at one point but has since slipped a little to be just above the mid point of its session range as I update.
AUD/JPY risk barometer, "Shake it off …":
