Forex news for Asia trading for Friday 26 February 2021
- Japan state of emergency to be lifted in western areas, including city of Osaka
- Advisor to the PBOC says China's growth this year 8 - 9%
- Bond rout .... turning into a dip-buying opportunity in Asia trade
- Boeing 777 emergency landing in Moscow - engine issue
- Forced sellers US bond rout - the belly of the beast
- FX option expiries for Friday February 26 at the 10am NY cut
- BOJ official says risks to the economy, inflation outlook, are skewed to the downside
- US House Speaker Pelosi says the $15 minimum wage proposal will remain in House bill
- PBOC sets USD/ CNY reference rate for today at 6.4713 (vs. yesterday at 6.4522)
- Goldman Sachs says USD to fall
- RBNZ Gov Orr says NZD is near fair value
- Australia Private Sector Credit for January 0.2% m/m (expected 0.3%)
- More from RBNZ Gov Orr - negative rates are an option
- US minimum wage measure ruled out
- RBA in buying 3-year Australian government bonds again, AUD 3bn amount
- RBNZ Gov Orr says commitment to prolonged stimulus remains
- Bitcoin selling takes it to touch $47k. ETH lower also.
- Japan January preliminary industrial production +4.2% m/m (expected +3.8%)
- Japan Retail sales for January -0.5% m/m (vs. expected -1.2%)
- Japan - Tokyo inflation data for February, headline -0.3% y/y (vs. -0.4% expected)
- The US has carried out an airstrike against Iranian-backed militia in Syria
- BoA see EUR/USD 1.15-1.20 range for the rest of the year, ending 2021 at 1.15
- ICYMI - ARK’s Cathie Wood says Bitcoin is getting the incremental flows that might go to gold
- G20 Finance Ministers and Central Bank Governors meet today, Friday 26 February
- Japanese media report state of emergency to be lifted early in 5 prefectures
- Heads -up reminder for the bond selling folks - the Fed is still jamming $120 billion/month into the financial system
- Trade ideas thread - Friday 26 February 2021
- New Zealand trade balance for January: -626m NZD (expected -627m NZD)
- EUR/USD 1.25 the line in the sand for the European Central Bank (but there's a but ...)
- Note for the diary - Federal Reserve Chair Powell speaking March 4
Asia bonds joined the global rout in early trade, as did regional stock markets, helping to propel the US dollar to add to its Thursday (US time) gains. Also of assistance to the prevailing mood resulting in the stronger US dollar was a US airstrike in Syria against infrastructure used by Iranian-backed militia. The strike was in response to Iranian attacks on US interests in Iraq, most recently last week.
The S&P500 emini stock index futures contract fell further also, but has staged a rebound following the news the US Senate will not consider the $15 Biden minimum wage plan (part of the President's coronavirus economic relief package) - a buy the fact response it appears.
As the morning in Asia progressed a bid emerged for US 10yrs, taking the price well off rout lows and translating into a small bounce for currencies against the dollar. As I post EUR/USD is net little changed on the session while AUD, NZD, GBP are all circa mid of their respective ranges. Of assistance to the AUD bounce was the Reserve Bank of Australia buying 3-year bonds (an effort to send yields to their target of 0.1%), the buying was especially notable as the RBA schedule for these operations is on Mondays Wednesdays and Thursdays. USD/CAD is little changed on the session also.
With all this USD/JPY traded weaker on the session, giving up 50+ points from an early high circa 106.40
On the data release docket today, Japanese retail sales (January) slumped again, the state of emergency impacting negatively while industrial output rose for the first time in 3 months. Australian private credit grew, housing still leading the way with investor credit moving into positive.
Bitcoin lost ground during the session, hitting as low as circa $46K.
