Forex news for Asia trading on Tuesday 25 May 2021
- Chatter of intervention in yuan: 6.4000 eyed
- HSBC has no plans for a cryptocurrency trading desk or to offer digital coins as an investment
- Japan has set a 3 day quarantine on arrivals from the UK
- Turkey has removed (replaced) one of four central bank deputy governors
- Japan finance minister Aso confirms extension of zero-interest loan scheme
- Australian trade balance April (preliminary) surplus of 10.1bn AUD
- Another RBNZ monetary policy meeting preview - quick snippet
- PBOC sets USD/ CNY central rate at 6.4283 (vs. yesterday at 6.4408)
- Australia will close its embassy in Kabul (Afghanistan)
- RBNZ monetary policy meeting 26 May - preview
- (South Korea) BoK meeting this week - consensus is for no rate change
- Singapore - MAS says inflation may increase gradually
- Singapore Q1 GDP +3.1% q/q and +1.3% y/y (expected +0.9%)
- Brexit - EU's von der Leyen says there is no alternative to Irish protocol
- Australia consumer sentiment for the week: 114.2 (vs. prior 112.5)
- EU sanctions Belarus - says Belarus attacked the EU
- ICYMI - The U.S. has issued a do-not-travel advisory to Japan
- China media report that Bitcoin mining is contrary to China's emission goals
- Chinese media report many China Bitcoin miners plan to relocate due to increased regulation
- Two factors to keep an eye on for AUD traders today
- Japanese media report that the period of zero-interest loan program is to be extended
- US Republican Senator says he is disappointed with infrastructure discussions
- More from Fed's George: It will take time for the economy to enter new normal
- Fed's George says she is not dismissing the risk of higher inflation
- US Commerce Dept says vehicle and light truck tires are being dumped, from South Korea, Taiwan, Thailand, Vietnam
- New Zealand Foreign Minister warns deteriorating relations with China may only be a matter of time
- Trade ideas thread - Tuesday 25 May 2021
- Musk tweets on Dogecoin, fees, phases of the moon
- Bitcoin, Ethereum, Doge and other crypto get a boost from a Musk tweet
Major FX rates were confined to small ranges only with a circa 15 point 'lap' for USD/JPY the notable event only. EUR/USD and cable have added on a few points while AUD, NZD and CAD languished sideways. Gold has lost a few dollars while BTC consolidated its bounce during the Europe/US timezone.
Regional stock markets were up again today, following on from the US gains, with higher in Japan, HK, China. China's CSI300 is up just over 2%. On the yuan there is chatter of State bank bidders ahead of 6.4000.
There was not a lot of news from the timezone today. We did get comments from Kansas City President Esther George, but nothing to depart from the current Fed script (no tapering yet). On the data front preliminary trade data from Australia showed an expanded surplus on the month (April compared with March) due to a decline in imports.
Offshore yuan, USD/CNH bounced ahead of 6.4, not by a lot though:
