Forex and Bitcoin news for Asia trading Thursday 27 September 2018
- BNZ revises its Fonterra milk price, lower
- HSBC raises its prime rate in Hong Kong for the first time in 12 years
- New Zealand survey shows confidence measure at first negative reading in 2 years
- More Brexit babbling … UK PM May is losing cabinet support
- Some UK Brexit news gaining traction - EU secret plan
- China data - August industrial profits +9.2% y/y (prior +16.2%)
- PBOC sets USD/ CNY central rate at 6.8642 (vs. yesterday at 6.8571)
- HKD - More from the HKMA - HK rates will ultimately catch up with US
- More from Macron earlier - would welcome the UK back to the EU
- US Treasury Secretary Mnuchin to visit Middle East in October
- FTSE Russell confirms it will add China A shares to indexes
- Hong Kong Monetary Authority raises base rate to 2.5%
- NZD has gone quiet. Meanwhile, more responses to the RBNZ coming through.
- More from Japanese PM Abe - will deal with Iran
- Responses to the RBNZ monetary policy announcement coming through
- Canada's Trudeau did not request a one on one meeting with Trump
- Japan PM Abe: US not to impose further auto tariffs while trade talks continue
- Trump says Canada has treated us very badly in trade
- US Pres Trump says does not matter when North Korea denuclearises
- French President Macron: Those who promoted Brexit 'just lied'
- US President Trump says he has evidence of China meddling in the US election
- Argentina central bank says will not intervene in peso in 34 - 44 range
- US President Trump says he is not happy the Fed raised interest rates
- NZD - RBNZ policy decision - rates stay on hold, as expected
- Argentina to have a flexible exchange rate, but not floating
- Levels to eye through the RBNZ decision
- Trade ideas thread - Thursday 27 September 2018
- FOMC responses coming in
We got a rate hike from the Federal Open Market Committee during the US session on Wednesday (ummm ... ICYMI). During the early Asia morning here today we had the Reserve Bank of New Zealand policy decision, the cash rate was left on hold as unanimously expected. There were quite a few changes to the press release issued by the Bank (there was no full Monetary Policy Statement due, nor a press conference scheduled) but the message remained pretty much the same despite this. The Bank said again the next move in rates could be up or could be down (right, thanks for that) but expected to be on hold through 2019 and into 2020.
The NZD had a swing within a 30 or so point range (0.6540/70 give or take) and is in the middle of there as I update.
So, all pretty neutral. But ... other news out of NZ is perhaps suggesting some weakness in the economy; farmers have turned net pessimistic for the first time in two years, and in addition BNZ revised their expectation for dairy prices lower. More on both of these in the bullets above. Coupled with rising US interest rates I'm gonna have to look for more NZD weakness ahead.
OK, so a 30 odd point range for the kiwi and the gold medal for movement today.
AUD/USD has not managed quite so much (0.7245/70 or thereabouts). The AUD dipped after the China data today (the NZD did alongside I should add) that showed a near halving of industrial profits in the month of August (to +9.2% y/y) from July (+16.2%). The PBOC lowered the onshore yuan rate a little on the day but did not follow the Fed with any rate hike.
In Hong Kong, though, we did get a rate rise. It is a regular practice for the HKMA to hike rates after the Fed do so and today they followed that pattern. But ... wait, there's more. For the first time twelve years HSBC raised its prime lending rate (by 12.5bps), a move foreshadowed by last weeks huge, huge gain in the HKD. More in the bullet above. As I update, Hang Seng also raised its rate ... its a sure thing the others will follow.
Cable is a little lower here on the session, a couple of items of Brexit news seemed to have impacted. Again, check out the bullets above but the gist is the EU is preparing for no deal, and the UK Cabinet seem to think the same thing.
CAD dropped also. US President Trump gave a wide-ranging press conference, and in part said he had refused a one on one meeting with CAD PM Trudeau (Trudeau denied asking for one, so go figure) and also that the US did not much like Canada's Nafta negotiators (yes, he really said this ...).
Elsewhere we had minor currency moves. EUR, CHF not much net change here on the session against the USD. USD/JPY too is little changed. it had a small move higher in the Asian mnring but is back near sessions lows as I post
Still to come:
