Forex news for Asia trading Wednesday 26 August 2020
- South Korean Health Minister says monitoring coronavirus situation this week, will decide on level 3 after
- US election outcome poses potential downside risks to US equities
- Not FX, but ... Hillary Clinton says Joe Biden should not concede on election night
- Japan media on a "shroud of uncertainty has been cast over Abe's political future"
- Australia Construction work done for Q2: -0.7% q/q (expected -7.0%)
- Goldman Sachs preview Powell's Jackson Hole speech coming up on 27 August
- PBOC sets USD/ CNY reference rate for today at 6.9079 (vs. yesterday at 6.9183)
- FX option expiries for Wednesday August 26 at the 10am NY cut
- South Korea new confirmed coronavirus cases +320
- US administration to release 1.5 million respirators from stockpile, send to nursing homes
- Reports of some US gas stations in Louisiana and Texas running dry
- USD/JPY has a small pop to test its overnight highs
- US National Hurricane Center says Laura strengthening over the central Gulf of Mexico
- New Zealand stock exchange facing trading problems again today
- Cambridge university receives UK funding for coronavirus vaccine trials
- JP Morgan on poor US consumer sentiment (but much better elsewhere)
- HSBC on two factors supporting AUD
- More on the German extension of labour market subsidies to end 2021
- New Zealand July 2020 trade balance NZD 282m (vs. expected NZD 293m)
- Australian state of Victoria report 149 new confirmed coronavirus cases
- Japan will extend its worker subsidy program to the end of this year
- Japan keen to join Five Eyes intelligence alliance
- A New Zealand bank has come out against negative rates
- Reports that UK PM Boris Johnson plans to resign in 6 months because of lingering coronavirus health problems
- PIMCO to liquidate currency fund
- North Korea's Kim Jong Un presided over a politburo meeting (in other words he is not dead)
- South Korea manufacturing and services business sentiment both rises
- Further refinery shut downs - Chevron shutting FCC at Pasadena, Texas
- Trade ideas thread - 26 August 2020
- Private oil data shows draw in headline in crude oil inventory
- Germany said to have extended its wages support program through to the end of 2021
- PBOC official says the Bank will maintain 'normal' monetary policy
News that a UK vaccine trial was to receive public funding gave a bit of a boost to risk in early trade with a higher AUD and, following along a little while later, a lower yen. The potential vaccine is one from Cambridge University, more in the bullet above. As I update both the AUD and the USD/JPY have almost retraced their moves.
There was little other news to move FX.
On the data agenda Australian construction work pleasantly surprised, a lot. While negative q/q (for the June quarter) it was not nearly as bad as expected. Construction was an 'essential industry' that had some exemptions from shut down restrictions but nevertheless this was a good result.
As I post EUR/USD is dripping down to its session low, albeit only in a 15 or so point top to bottom range. Cable is similarly on its lows.
