Forex news for Asia trading on Wednesday 28 July 2021
- China's Global Times says the US will fear China's nuclear threat
- Australian Federal government coalition partner likely to be upset about vaccines
- Australia Q2 CPI headline rate 3.8% y/y (vs. expected 3.8%)
- More on CBA's dismal outlook for Australia's economy this quarter ... and RBA
- PBOC sets USD/ CNY mid-point today at 6.4929 (vs. yesterday at 6.4734)
- Australia - Sydney lockdown formally extended for another 4 weeks
- More supportive comments coming out of China - don't be "pessimistic" on stocks
- Australia - ANZ expect an economic contraction in Q3, rebound in Q4
- Bank of Japan July meeting 'Summary of Opinions'
- Moderna to resume COVID-19 vaccine shipments to South Korea next week
- ICYMI - UK expected to announce vaccinated visitors to be allowed from US & EU, no quarantine required
- Reports in Chinese media that more fiscal support for the economy 'may' be coming this quarter
- Australian CPI report due today - but AUD likely to be moved by at least 2 other factors
- Another 3 Japanese prefectures are requesting a state of emergency declaration
- Eyes on China stock markets ... and steel exports
- US CDC recommends masks for vaccinated people - White House concurs
- The US Fed's FOMC meeting will be a focus today - preview
- RBA Deputy Governor Guy Debelle spoke overnight - full text
- Trade ideas thread -Wednesday 28 July 2021
- Earnings announcements from the US are embarrassing stock analysts again - smashing expectations
- Oil inventory survey shows a larger headline draw than was expected
- More on the IMF forecasting weaker Emerging Market growth
- The EU has paused its legal action against the UK over Northern Ireland Protocol 'breaches'
Ahead of the local opening on Chinese stock markets there were a series of supportive media pieces, urging people not be pessimistic on equities and assuring there was further government spending support for the economy on the way this quarter. Stocks, nevertheless, dropped from the get-go. As I update they have stabilised but are still negative for the session so far.
BTC/USD has had a better session here than it had yesterday. The crypto has risen to highs just above $US40K and is a little under there as I post.
Now to forex ... and its been another lacklustre morning in Asia with not a lot of change. USD/JPY retraced some of its overnight loss, hitting to above 109.90 briefly and is currently circa 109.80. AUD/USD swung within a small range ahead of and over the release of inflation figures; Q2 CPI came in hot for the headline (3.8% y/y) but the core reading, trimmed mean at 1.6% y/y, printed well under the lower bound of the Reserve Bank of Australia target band (of 2-3%).
Prior to the data release some Australian banks had issued revised (lower) forecasts for Q3 GDP due to the ongoing lockdown in Australia's largest city and key economic powerhouse of Sydney. Alongside the lower forecasts for growth were implications for RBA policy; ANZ see the 'taper' being delayed to November this year, while CBA don't see it until February 2022 and also pushed out their rate hike call from late 2022 to May of 2023. The inflation data today does not stand in the way of any 'lower for longer' from the RBA.
Gold added on a few dollars and is testing its overnight high as I post.
Hong Kong's Hang Seng is a better performer than the mainland Shanghai Comp:
