Forex news for Asia trading Thursday 29 August 2019
- Japan says its considering strengthening monitoring of Chinese investment
- Hong Kong Police will ban mass rally and march on Saturday
- More from Fed's Daly: Domestic economy really solid
- ICYMI: US Navy destroyer sailed near islands claimed by China in the South China Sea
- China says its troops stationed in Hong Kong will make "new" contributions to maintaining prosperity and stability
- Gundlach says Trump is intentionally forcing an economic downturn in order to fix it just before 2020 election
- China announces a military parade to celebrate the 70th anniversary of the establishment of the PRC
- UK data (from earlier) - 14th consecutive month of falling vehicle production
- BOJ's Suzuki warns of negative effect of lowering rates further
- Australia Private Capital Expenditure for Q2 (Capex): -0.5% q/q (vs. expected +0.4%)
- PBOC sets USD/ CNY mid-rate for today at 7.0858 (vs. yesterday at 7.0835)
- FX option expiries for Thursday August 29 at the 10am NY cut
- New Zealand data - August Business Confidence: -52.3 (vs. prior -44.3)
- Analyst removes call for RBA rate cut in Q4 2019 - and points to upside risk for AUD today
- Japan earthquake: M4 (on 7 scale) - east of Aomori Prefecture
- More from Fed's Daly - in a "watch and see" position on monetary policy right now
- White House trade adviser Navarro again tries to pressure the Fed into cutting rates
- Brexit - UK heading into uncharted territory … the pound ... further weakness to come
- AUD levels for the session ahead - support, resistance
- Australian press: A 'hard landing' for China could put 550,000 Australian jobs at risk
- Mnuchin says China trade meeting will happen, but maybe not soon
- Dalio says central banks’ power to reverse an economic downturn is "coming to an end"
- Fed's Daly says need fiscal and monetary policy to work together
- Here is what's driving gold prices higher. Forecasts out to end-2019.
- Fed's Daly: Says she is 'biased' toward running economy hot, given low inflation, uncertainty over 'full employment'
- Mnuchin says US does not intend to intervene on the USD for now
- US Treasury Secretary Mnuchin says ultra-long US bonds are under "very serious" consideration
- Trade ideas thread - Thursday 29 August 2019
Strength for yen and weakness for AUD look like risk-off forex flows. And that's what we got during the Asia session here as I update.
Yes there were some tense news items about, with US naval movements close to islands claimed by China and also Chinese troop movements in Hong Kong (said to be routine) and yes, yen did gain from the get go here; USD/JPY dropping under 105.90. Not a big move.
For AUD the drop coincided with another round of less than great data. Today it was Q2 capex, with a headline miss partially offset by an as expected '3rd estimate' for spending ahead. The details of the report were, on balance, supportive of capex ahead, but of course, that can change. What we do know is that yesterday's construction data and today's capex will not be overly supportive of Q2 GDP data due Wednesday next week. Thank goodness for strong exports, these should be an offset.
NZD, too, weakened, in response to very poor business confidence (lowest in 11 years) data alongside a further drop for inflation expectations (lowest since late 2016). More easing from the RBNZ would seem to be getting closer.
EUR/USD has gained just a few tics, while cable is down a similar amount.
As I update NZD/USD is testing fresh session lows.
