Forex news for Asia trading Thursday 23 July 2020
- China's order to the US to close one consulate office is expected later today
- NZ trade date earlier - "looks a bit fishy." And, ozzn Australian PMIs - "encouraging".
- ANZ on the New Zealand economy's vigorous bounce out of lockdown … but
- TD see a range trade ahead of oil - WTI $38 to $42
- PBOC sets USD/ CNY mid-point today at 6.9938 (vs. yesterday at 6.9921)
- TradeON Summit 2020 is right around the corner - less than a week on July 28
- FX option expiry 24 July 2020 10am NY time
- UK employers have turned positive about hiring, investment for the first time since February
- UK data earlier - consumer confidence held at -27
- More from US Sec State Pompeo - China President Xi has clearly taken aggressive actions
- More on that EUR/USD forecasts raised …. to 1.12! (not a typo)
- Australia July flash PMIs. Manufacturing 53.4 (prior 51.2) Services 58.5 (prior 53.1)
- New Zealand trade balance for June NZD 426m (expected 450mNZD)
- Arizona extends coronavirus lock down
- CME raises Comex 5000 silver futures (SI) margins by 12.5%
- China says can expel hundreds of US "diplomats" who actually worked for CIA in Chinese mainland
- Wrap up of Pompeo's "fiery speech, hammers China over international abuses"
- Trump says again that the trade deal with China means much less to him now
- Trump says it's "not the right time" to have a big convention in Jacksonville
- Pompeo Q&A now - China walked away on their promises on Hong Kong
- US Sec State Pompeo says China President Xi is a true believer in totalitarian ideology
- US Coronavirus - The White House daily show is about to start, live link
- US Sec State Pompeo says China threat to economy, liberty
- Trade ideas thread - Friday 24 July 2020
- Intel further chips away at stock indices - disappointing Q3 earnings guidance
- US Senate leader McConnell says will introduce 'framework' for recovery bill "early next week”
- Here is a raised forecast for EUR/USD that the bulls won't like (bears, you're welcome)
It was a quiet beginning to the session with yesterday's flat-lining looking like it might play out again on another Japanese holiday (Health and Sports Day). We had a very forthright speech indeed from US Secretary of State Pompeo who made some very aggressive points on Chinese Communist Party tyranny; Pompeo is pretty consistent on this. He did go out of his way to mention the current trade deal remains in place.
For the 'risk' currencies they found a small bid, as did US stock equity index futures upon reopening.
Into early Singapore/Hong Kong trade USD/JPY was shunted lower, dropping from above 106.80 to test 106.50 and dragging yen crosses down alongside. An obvious catalyst was Pompeo, but if so it was a long time (after his speech) coming.
On the data front we had encouraging flash PMIs from Australia, diminished somewhat by the 'just wait for the Melbourne shut down to impact next month' cautions, and reasonably so.
In the US, Trump cancelled his party convention in Florida, citing the danger posed by the surging COVID-19 outbreak. Deaths topped 1,000 yet again on Thursday and while case growth does appear to be slowing somewhat the pipeline of cases → hospitalisations → ventilation → and inevitable deaths will grind on, ensuring high death counts for some time to come. Grim.
Stay tuned for an announcement out of China to shut a US consulate office - this has been well flagged both yesterday and again today.
Australia's east coast was hit with an extended internet outage during the session
