Forex news for Asia trading for Thursday 3 December 2020
- Deutsche Bank forecast China GDP likely hitting 9.5% next year
- Taiwan to increase purchases of Australian wines
- More on Australia's plans to begin COVID-19 vaccinations in March 2021
- China is reportedly ready to accept Australian coal at its ports (4 ships only up to now)
- Morgan Stanley tip the USD to fall another 10%, structural bear market
- China Caixin/Markit PMIs Services 57.8 & Composite 57.5 for November
- BOJ's Suzuki - says the Bank will work to maintain stability in markets
- Coronavirus - Italy will ban movement between regions from December 21 to January 6
- PBOC sets USD/ CNY reference rate for today at 6.5592 (vs. yesterday at 6.5611)
- FX option expiries for Thursday December 3 at the 10am NY cut
- Goldman Sachs says the probability of a near-term US fiscal stimulus package has increased
- Japan - Jibun Bank/Markit PMIs Services 47.8 and Composite 48.1 (final) for November
- Australia trade balance for October: AUD 7456m surplus (expected surplus AUD 5800m)
- Australia Housing finance data for October, Home loans +0.7% m/m (expected +2.5%)
- New Zealand - ANZ Commodity Price index for November +0.9% m/m (prior +1.9%)
- CNN reports Ivanka Trump has been deposed in an alleged Inaugural Fund misuse suit
- Goldman Sachs has upgraded Tesla (TSLA) to Buy, from previous Neutral
- OPEC+ decision is expected Thursday - gradual taper in cuts?
- France tells EU negotiator Barnier of veto risks if he 'caves' to the UK on Brexit trade talks
- Canada expects COVID-19 vaccine arrival from January 4, 2021
- Former French President Valery Giscard d'Estaing has died
- More on the China delisting bill now awaiting Trump's signature
- Australia PMIs for November (final) - Services 55.4 (prior 53.7) & Composite 54.9 (prior 54.7)
- BBC says EU-UK Brexit trade deal may be by the end of the week
- US House passes bill that could delist Chinese companies from US stock exchanges
- New Zealand October building approvals +8.8% m/m (vs. prior +3.6%)
- Trade ideas thread - Thursday 3 December 2020
- Australia AiG Construction PMI for November: 55.3 (prior 52.7)
The euro carried on with its move higher in Asia, initially topping out ahead of 1.2120 and after a few hours of sideways then setting a new high above there for the session. The range on the day here has not been large. Cable is also a touch higher, to highs above 1.3385 as I update. Brexit news flow was light during the session here.
Weakness for the USD was expressed elsewhere also, gold is gaining toward $1836 as I post. AUD, CAD, NZD, CHF are all stronger against the dollar, while yen is a bit of laggard.
News flow was light, for the AUD a notable event was China allowing some Australian coal ships to unload, only 4 but perhaps its a start to some easing of tensions? Maybe.
Data flow was dominated by services PMIs for the region, most of which improved, some very strongly indeed. Australian trade data showed a good beat for exports (iron ore exports hit a record level) and the trade balance, but a miss on exports.
The US set some ugly marks on COVID-19 infections,
- a record number of new cases nudging towards 200K in a day,
- a record number of hospitalisations, over 100K
- Deaths for the day at 2,638 (Johns Hopkins data)
