Forex news for Asia trading Tuesday 3 March 2020
This came out after I posted the wrap but its a biggie so slotting it in:
G7 does not include specific language calling for fresh fiscal spending or coordinated interest rate cuts
- Australian bank CBA passes on full 25bp rate cut
- ASB forecasts the RBNZ to cut cash rate in March and again in May
- Australia RBA response - Westpac quick to pass on full rate cut
- RBA announce 25bp interest rate cut
- ANZ boost their Australian GDP forecast to 0.7%
- US city of Redmond, WA, has declared a state of emergency due to coronavirus
- Westpac lower their GDP forecast for Australia to 0.3%
- AMP's forecast for Australian GDP is 0% with "some risk it could be negative"
- Here is a gold price target for $1650, with "risks are skewed to the upside in H1"
- Hong Kong to fly in 533 HK residents from Hubei, 14 day quarantine
- PBOC sets USD/ CNY reference rate for today at (vs. yesterday at 6.9811)
- Economic modelling of coronavirus scenarios for Australia - "grim"
- Australian PM Morrison says targeted fiscal stimulus needed after coronavirus outbreak
- FX option expiries for Tuesday March 03 at the 10am NY cut
- South Korea reports 600 new coronavirus cases and 3 new deaths
- New Zealand Monthly Economic Indicators February 2020
- Japanese PM Abe said government ready to deploy further fiscal stimulus measures
- BOJ to buy 500bn yen of JGBs in an unscheduled repo operation
- Australian export input to GDP figures disappoints
- Australia Building Approvals for January: -15.3% m/m (expected 1.0%)
- US President Trump says pharma companies to have virus vaccine relatively soon
- Mainland China reports 125 additional coronavirus cases and 31 new coronavirus deaths
- Honda is reducing production at two plants citing parts supply issues
- If the Fed cuts expect the USD to remain resilient
- Japan fin min Aso declines to comment on G7 call re coronavirus
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- Australia weekly consumer confidence 104.8 (prior 108.3)
- US VP Pence says risk of coronavirus to the US remains low
- UK Treasury committee to question BOE's Carney and Bailey
- Trade ideas thread - Tuesday 3 March 2020
- China's UN Ambassador says country is doing what it can to revitalise its economy
- ECB says stands ready to take appropriate and targeted measures as necessary
The Australian Prime Minister let the cat out of the bag today saying the government and the RBA were co-ordinating and that he expected banks to pass on the RBA rate cut "if" a cut it was. Srsly, who was he kidding? The PM does not say that unless he knows what's coming. AUD got sold off on this. I suspect it would have been anyway given what I thought was a 'no brainer' cut from the RBA in my preview earlier.
Anyway the 'upshot' (you like that?) was a higher AUD once the rate cut was announced by the Bank.
The RBA cut due to coronavirus impact/uncertainty, the accompanying statement from Governor Lowe was optimistic on the domestic economy otherwise. RBA projections have been optimistic all the while the economy has worsened, so no change there.
NZD found a bit of a bid alongside the AUD.
There was more from Australia today, inputs the Q4 GDP were a touch weaker (data is due tomorrow).
News flow otherwise was sparse with little to move the forex around too much.
USD/JPY did fall away from mid 108s back to circa 108.00. Gold made it back to highs circa 1600.
