Forex news for Asia trading Monday 30 September 2019
- Concerns on possible US actions to restrict China investment continue to echo in Asia
- Heads up for Asian market holidays on Tuesday - Hong Kong and China are both out.
- Deutsche Bank on US China restrictions story - positive for yen, gold, CHF
- China Caixin / Markit Manufacturing PMI (September) 51.4 (expected 50.2)
- Australia private sector credit for August: +0.2% (expected 0.3% prior 0.2%)
- PBOC sets USD/ CNY reference rate for today at 7.0729 (vs. Friday at 7.0731)
- FX option expiries for Monday September 30 at the 10am NY cut
- BOJ increases its purchases of 1-3 yr JGBs (yes, increases)
- Australia monthly inflation guide for September 0.1% m/m (vs. prior 0.0%)
- PMI data from China for September. Manufacturing 49.8(expected 49.6)
- There are (at least) 3 reasons for the RBA to cut the cash rate tomorrow - preview
- New Zealand business confidence for September is -53.5 from -52 previously
- BOJ summary of opinions - considering if more easing is needed
- Japan Industrial production for August preliminary: -1.2% y/y (expected -0.5%)
- Japan data - August retail sales +4.8% m/m (expected +2.4%)
- News of Japan's GPIF to invest overseas - unclear if additional investment
- Saudi Arabia's head says attacks on oil facilities were an act of war by Iran
- UKk data - Lloyds Business Barometer improves to 2 in September, from 1 in August
- RBA October monetary policy decision due Tuesday (1st Oct.) - preview
- Japan's LDP (Abe's ruling party) will propose tax breaks to encourage retained earnings into new businesses
- RBNZ says New Zealand economy is resilient
- New Zealand Building permits for August: +0.8% m/m (prior -1.3% m/m)
- More on the yen, this time from MS, How to trade yen from the long side.
- Goldman Sachs on yen - supported by US considering limits on portfolio flows into China
- PBOC (weekend statement) says will increase the strength of counter-cyclical measures
- China's Vice com min (weekend comments) urges 'calm and rational' resolution to trade war
- FT front page for Monday will feature a Draghi farewell message on fiscal union
- Monday opening FX rates - foreign exchange rate indications - 30 September 2019
- Video: Why weak business investment isn't Trump's fault (and why he can't fix it)
Subdued forex movement in Asian on Monday to begin the new week with NZD the stand out loser.
The catalyst for the weaker NZD was another poor set of results from ANZ's monthly business survey in the country. Both activity and confidence indicators fell again, confidence to a fresh more than 11 year low.
EUR/USD is a few tics lower on the session, as is AUD/USD, but ranges for each are very small. Cable, ditto.
Little change too for USD/JPY and USD/CHF.
Gold lost a few dollars. China is closed from tomorrow until October 8 for the 'Golden week' holiday, which may weigh on gold demand in the week ahead. Speaking of China, we got PMIs for September out today, with mixed signals - (see bullets above).
The Bank of Japan 'summary' of its most recent meeting did not add too much fresh insight. Yes, the bank is said to be considering further easing but we knew that and there was nothing to in the summary to indicate this is imminent.
