Forex news for Asia trading Thursday 23 April 2020
- China has released revised trade data for March, not much change
- New Zealand credit card spending for March: -9.1% m/m (prior -0.7%)
- Australian PM Morrison says we are heading back to a COVID-safe economy.
- NZ PM Ardern says looking at all options to stimulate the economy
- Australia preliminary exports data for March +29% m/m
- Coronavirus - China economy re-opening is still quite slow
- PBOC sets USD/ CNY reference rate for today at 7.0887 (vs. yesterday at 7.0903)
- FX option expiries for Thursday April 23 at the 10am NY cut
- Japan flash PMIs (April) Manufacturing 43.7 (prior 44.8) & Services 22.8 (33.8)
- Coronavirus - HK press says mainland China might have had four times as many infections as official count
- Here's a video to watch on oil futures - market worked as it should on Monday
- NZD/USD - potential for 0.58 within a month
- South Korea Q1 GDP -1.4% q/q (expected -1.5%)
- Australia Flash preliminary PMIs (April): Manufacturing 45.6 (prior 49.7) Services 19.6 (38.5)
- Germany governing coalition agrees to further economic relief measures
- Australian March retail sales record highest ever. Citi expect another record next month. But a record decline.
- Japan media report that the Bank of Japan is considering further easing
- Iran projectile launch - US says its a military satellite put into orbit
- US Senate McConnell not opposed to infrastructure spending - should be paid for, not debt financed
- ECB loosens collateral rules to accept non-investment grade bonds as collateral
- AUD a proxy for global risk sentiment - to remain under pressure
- Trade ideas thread - Thursday 23 April 2020
- Oil - US investigating whether traders profited from 'tips' on Russia / OPEC talks
- Big loser from the oil price plunge trots out the whiny 'manipulation' excuse
Ahead of the upcoming preliminary PMIs from across Europe and the US on Thursday we got Australian and Japanese results - declines for manufacturing but a crushing for services PMIs were evident in both. Record lows for both of the services PMIs.
The Australian dollar was sold off with the very poor result, dragging NZD lower alongside. There was some USD strength in there to muddy the waters just a little with a lower EUR & GBP also.
The Japanese PMI followed a little later in the session.
Data again proved to be a bit of an AUD mover, the preliminary export numbers for March surged, up 29% m/m after slow January and February results. AUD/USD managed to tick back towards its earlier session high and as I update its down just above 0.6300. Now that we are beginning to see the economic impacts of the virus outbreak response in the data markets are paying them more heed.
Apart from these the flow of news etc was light.
Oil has traded slightly higher on the session in Asia while gold popped its overnight high to trigger some stop loss buyers before reversing back a session low.
Plenty of event risk ahead today, including:
- Reminder - its a huge PMI data day ahead in Europe and the US
- US jobless claims data due Thursday - astronomically high still expected
- Heads up for a European Union's heads of government videoconference Thursday
And, next week:
