Forex news for Asia trading Friday 24 May 2019
- HK dollar borrowing rates ticking higher - defence of the HKD?
- TD says 7 will be allowed to break for USD/CNY
- FT headline: 'China weighs allowing the renminbi to ‘crack 7’. But no indication they are.
- TD says USD/CAD remains a buy on dips
- ICYMI - AUD drop as Westpac forecasts 3 rate cuts from the RBA this year
- Westpac are now forecasting 3 RBA rate cuts in 2019 (from 2 previously)
- PBOC sets USD/ CNY central rate at 6.8993 (vs. yesterday at 6.8994)
- NZ PM Ardern says New Zealand economic growth likely to be slower
- More CAD - Morgan Stanley on the Bank of Canada
- Honda is all revved up - says sales tax hike risks failure for Abenomics, it should be delayed
- Bank of Canada meet May 29 - unanimous expectations of on hold rates (and likely for a long time)
- More on the US to impose tariffs on countries that undervalue their currencies
- Canada election due October - opposition to drop pledge to balance budget within 2 years
- Japan April headline CPI: 0.9% y/y (expected 0.9%) core 0.9% (0.9%), core-core 0.6% (0.6%)
- Australian media on an investigation into rate rigging - bank fined $50 million
- US Commerce dept proposes imposing duties on countries that undervalue their currencies relative to the USD
- New Zealand - trade balance for April: NZD 433m (expected surplus 450m)
- Trump on the security threat posed by Huawei, but could be included in China trade deal - more (still makes no sense)
- Japan press on China digging in heels for 'Long March' battle with US
- ICYMI: US to restrict of high-tech goods to China even further
- UK press says Boris Johnson will lose his seat at next election if Brexit Party surge continues
- USD/JPY to head to 108 as safe have flows transition
- ECB minutes response - 'protracted soft patch, but ... a more solid growth rate H2' expected
- EUR/USD - corrective rebound, 1.1190 resistance
- Trade ideas thread - Friday 24 May 2019
- Brexit - More on UK PM May to announce her resignation timeline
- Trump comments on Huawei - very concerned on security risks, trade deal but could be included in
Westpac revised their Reserve Bank of Australia rate cut call today and are now expecting 25bp rate cuts from the Bank in June, August and November. Prior to today, Wespac's most recent call was for two cuts of 25bps, June and August.
The Australian dollar had been stable around 0.6900 but quickly gave ground, albeit not too much, to under 0.6885. It remains around that level as I update.
NZD/USD lost a few tics alongside the AUD in little more than a 10 point range for the session. EUR, GBP and CAD have all been quiet against the USD and are little net changed on the session.
USD/JPY stuttered its way above 109.70 before dropping back just under 109.60. We got inflation data of Jpan today (April, national). While still far below the 2% target the rates have been tiptoeing a little higher. Core-core inflation (excluding food and energy) and the closest measure too US core inflation came in at 0.6%. I doubt Kuroda will be doing cartwheels but maybe its some encouragement for the BOJ.
Core-core inflation:
The People's Bank of China set the USD/CNY reference rate today only one point from Thursday's fix. It seems the heat has gone from the devaluation moves for the RMB. There are some interesting moves from the US Commerce Department afoot worth checking out in the bullets above.
Still to come:
