Forex news for Asia trading on Thursday 26 August 2021
- Economic calendar due from the US Thursday 26 August 2021
- More on the Bank of Korea rate hike, first in almost three years
- Australian Private Capital Expenditure (capex) for Q2 2021 +4.4% q/q (vs. expected 2.5% q/q, prior 6.3%)
- PBOC sets USD/ CNY reference rate for today at 6.4730 (vs. yesterday at 6.4728)
- New Zealand reports 68 new COVID-19 cases
- Coronavirus: 1029 a record high new cases for Sydney / NSW (Australia's largest population city and state)
- Coronavirus- Two major Sydney hospitals have reduced or stopped intake of patients
- People's Bank of China says it will ensure ample liquidity
- Heads up for ECB Schnabel comments from 1500GMT Thursday 26 August 2021
- Poll results - Rally in global stocks nearly over, further gains will be limited, correction likely by year-end
- Here's a EUR/USD 1.16 forecast ... in 6 months
- Japan data - Services PPI for July +1.0% y/y (vs. expected 1.0%, prior 1.4%)
- Coronavirus - Australia's 2nd largest population state reports a jump higher new case count
- Jackson Hole agenda to be published later today, Thursday 26 August 2021
- Japan Budget requests for fiscal 2022 are expected to hit a record high
- Goldman Sachs, Morgan Stanley both looking for lower CHF
- Wall Street honchos and Chinese officials to meet, try to smooth relations
- Trade ideas thread - Thursday 26 August 2021
It was a mixed bag of minor moves across major FX today with AUD, CAD and NZD notable losers against the USD but a touch weaker also for EUR and GBP. There was little news to act as a catalyst.
On the data front we had Q2 capex from Australia providing a beat. Meanwhile COVID-19 cases in the country continued to rise, New South Wales (Australia's largest population state) hitting a new high above 1000 cases today. The state will extend lockdown through to September 10 (at least).
South Korea hiked its key rate by 25bps today, the first rise for nearly 3 years.
The People's Bank of China injected a net 40bn yuan via OMOs today, the same as it did yesterday.
Reginal equities: Shanghai Composite, Hang Seng and Nikkei 225 are all down a little.
Markets await Federal Reserve Chair Jerome Powell speaking about the economic outlook in his keynote address at the Federal Reserve Bank of Kansas City annual economic symposium in Jackson Hole, Wyoming. This is not until 1400 GMT on Friday, so tomorrow in Asia may well see us with yet another session of rangebound waiting shuffling.
AUD/JPY dribbled lower:
