Forex and Bitcoin news for Asia trading Friday 24 August 2018
- New Australian Prime Minister is Scott Morrison
- China NDRC says will closely monitor impact from US - China trade frictions
- Taiwan foreign minister says support from US and Japan is stronger than ever
- PBOC adds funds today via MLF
- Japan CPI data out earlier - still bumbling along below BOJ target - recap
- PBOC sets USD/ CNY reference rate for today at 6.8710 (vs. yesterday at 6.8367)
- China's says had a constructive, candid exchange over trade issues with US
- Barclays think the RBA will be on hold for longer
- Japan National headline CPI (July): 0.9% y/y (vs. expected 1.0%)
- Former RBI Gov says asset prices at high levels, global economy fragile
- NZ trade balance - exports a big beat
- CAD PM Trudeau: We seem to be in a more positive moment on Nafta
- RBNZ's Orr: We don't rule out a cut in interest rates
- ForexLive celebrates its sesquicentennial (that's 150, folks)
- US Sec. of State Pompeo announces a fourth trip to North Korea
- Trade ideas thread - Friday 24 August 2018
- Mexican economy minister says we are not there yet on Nafta
The Australian dollar takes the prize as most improved for the day on an otherwise dull session.
Scott Morrison was the Treasurer but is now Prime Minister after winning the spill against former PM Malcolm Turnbull. Of the three contenders Morrison was probably the most market 'friendly', a known quantity who will be seen as a 'steady hand' for the economy in what may well be a tumultuous few months to come. Australia is due for a Federal election by May of 2019 but it seems likely to go the polls earlier than that. Stay tuned.
The Australian dollar had languished near its lows for much of the session but had a pop on the resolution of the leadership question. 0.73 will be a tough hill to climb though. I reckon its back to eyes on the USD as a driver now.
Elsewhere, we got Japanese inflation data today, for July. More of the same rally - no progress on core (excl food and energy), the lat4st reading at 0.3% is still an order of magnitude below the BOJ target. Nothing has changed here.
USD/JPY edged a few ticks higher on the session.
Ranges were small elsewhere too, EUR/USD up a few tics, as is cable. USD/CHF is barely changed, while USD/CAD is up a few points.
The Kiwi saw some selling on the AUD pop (AUD/NZD buyers) to return to barely changed on the session after a small range. It had managed slightly better after good trade figures earlier.
The PBOC cut a chunk out of the CNY today, and added liquidity via a one-year MLF
Eyes and ears are on Federal Reserve Chair Powell, speaking at Jackson Hole Friday morning 10am NY time. Bank of England chief economist Haldane will speak at the same venue later in the day, and Bank of Canada Governor Poloz will round out these big three on Saturday..
Still to come:
- Forex option expiries today, Friday 24 August 2018
- Jackson Hole full agenda is out now (includes previews of Powell's speech)
- BOC Governor Poloz is speaking at Jackson Hole on the weekend - preview
