Forex news for Asia trading Wednesday 3 July 2019
- Nouriel Roubini warns of trade war tipping global economy into a recession
- US government staff told - treat Huawei as blacklisted
- BlackRock still sees a Fed rate cut at the next FOMC meeting
- US to levy duties on certain steel from Vietnam
- China June Caixin Markit PMIs: Services 52.0 (expected 52.6) and Composite 50.6 (prior 52.7)
- BOJ's Funo says must maintain low rates for a long period
- Australia - Trade Balance for May AUD 5745m (expected 5250m AUD surplus)
- Australia - Building Approvals / permits for May: +0.7% m/m (expected 0.0% )
- Thoughts on the potential for EUR to replace JPY as best finding currency
- PBOC sets USD/ CNY central rate at 6.8640 (vs. yesterday at 6.8513)
- FX option expiries for Wednesday's 10am NY cut
- The BOJ has reduced its buys of 3-5 year and 10-25 year JGBs
- New Zealand - ANZ Commodity Prices for June -3.9% m/m (prior +0.1%)
- Morgan Stanley cuts long-term oil price view
- Japan - June PMIs Services 51.9 (prior 51.7) and Composite 50.8 (50.7)
- South Korea has cut its GDP growth forecast - cites trade war uncertainties
- AMP on the Reserve Bank of New Zealand - when to expect the next rate cut
- Australia - CBA Markit PMIs Services 52.6 (prior 53.3)and Composite 52.5 (prior 53.1)
- Here are the two latest Trump nominations for the Federal Reserve Board
- Australian data - Services PMI 52.2 for June (prior 52.5)
- Big explosion reported in Tunis
- Brexit - UK construction industry sharpest fall in a decade in June (ICYMI)
- ICYMI - EU/Switzerland share trading war
- USD/CAD key supports around 1.3100
- Trade ideas thread - Wednesday 3 July 2019
- IMF's Lagarde as head of the ECB … "knee-jerk" euro bearish
- Private oil data shows a larger than expected draw in headline crude oil inventory
Gold had a good sized rise in early Asia, heading above $1435 before stabilising and subsequently dropping back around $10+. It had broken range highs in past weeks amidst expectations of further easing from central banks globally, keeping it on the boil. The overnight news of an unexplained recall to Washington for Vice President Pence, mid-flight no less, raised questions on potential security/geopolitical issues. I've seen a report (not in the mainstream admittedly) of a Russia/US skirmish of the coast of Alaska. Treat with care. But nevertheless, a solid rise indeed for gold.
Yen continued its overnight gain; as US yields fell further here in Asia so did USD/JPY. Lows were towards (but not to or through) 107.50.
EUR/USD is barely changed net for the session. Cable pretty much ditto.
USD/CAD has had a range of 15 or so points around 1.3100, mainly a touch to the upside of there after lows just under. AUD/USD has had similar magnitude range and is net little changed on the session despite some improving data today (see bullets above). NZD/USD has added a handful of tics for the day.
BTC/USD traded to above 11300.
