Forex news for Asia trading Friday 31 May 2019
- Former China Vice commerce minister: need to prepare for the trade war to spread to geopolitical areas
- American University professor's 13 “key factors” - predicts Trump win in 2020 (unless …)
- Huawei sends US workers working in China back to the US
- Unanimous expectations for the RBA to cut rates next week - but here is the risk
- China has prepared its plan to limit rare earth exports to the US, if needed
- An ex PBOC Governor says he expects there will be good news on US China trade war
- Japan industrial production data out earlier - an improvement. Recap.
- China Manufacturing PMI for May came in under April and missed estimates - more detail
- Australia Private Sector Credit growth for April 0.2% m/m (expected 0.3%)
- PBOC sets USD/ CNY reference rate for today at 6.8992 (vs. yesterday at 6.8990)
- China official PMIs released - confirm the earlier leak
- Early release of China PMI for May? Composite reported at 53.3 (prior 53.4)
- USD/JPY continues to come off following Trump trade war intensification
- Kim Jong Un executed North Korea special envoy to US Kim Hyok Chol after the failed summit
- Japan (preliminary ) Industrial Production 0.6% m/m in April (vs. expected 0.2%)
- Japan retail sales for April: 0.0% m/m (vs. expected 0.6%)
- Mexican Deputy Foreign Minister says Trump move is extreme
- Trump intensifying the trade war, Mexico the target (for now) - MXN collapse
- Mexico says if the US imposes the new tariffs Mexico will respond strongly
- CAD getting slammed - Trump slapping huge tariffs on Mexico, contagion fear
- The 5 % tariff US President Trump just slapped on Mexico - here's how it will rise to 25% by October
- Trump intensifies his global trade war, yen crosses on the slide
- Trump says the US to impose 5% tariff on all goods from Mexico
- Japan April unemployment rate drops to 2.4% in April
- Japan - Tokyo area headline CPI 1.1% y/y( vs. expected 1.2%
- Reports US President Trump to threaten curb on intelligence sharing with UK
- UK data - Lloyds Business Barometer (May): 10 (prior 14)
- UK data - GfK consumer confidence (May): -10 (vs. expected -12)
- Iraq weighs in on Iran - president says regional crises may lead to war
- Merkel speech - slams Trump. Attacks protectionism, trade war, walls of ignorance, lies.
- <a title="Saudi King says Arab emergency meeting to discuss exceptional challenges to Arab, regional and international security And to pump up the oil price too? (Saudi King says Arab emergency meeting to discuss exceptional security challenges
- New Zealand ANZ monthly consumer confidence for May: -3.2% (prior +1.1%)
- Bitcoin falls out of bed, down to $8000. OK then, who has stolen investor funds this time?
- US Vice President Pence laying the groundwork for Trump to put more pressure on Mexico
- Trump prepares to threaten Mexico with new tariffs <-- early warning of what was to come
- Pelosi says Trump sending congress a draft new NAFTA is 'not a positive step'
- Trade ideas thread - Friday 31 May 2019
- AEP: German bond yields plumb 700-year lows
- Saudi King says Iran's nuclear and ballistic missiles are a threat to global security
- Fed to reinvest principal payments on agency debt, mortgage-backed securities from Oct 2019
US President Trump sent his agreed trade deal with Canada and Mexico to Congress for approval and then a couple of hours later slapped more tariffs on Mexico.
Yeah, what?
Its true! Trump will hit Mexico with a 5% tariff on ALL goods brought into the US (OK, its US consumers that'll pay extra but let's not quibble the details in the wrap) to rise to 25% by October 1. Trump says he will only remove the extra tariffs if Mexico stops the movement of Central American migrants the US.
Goodness knows what China is thinking of this, trade deals (like the only just agreed deal with Canada and Mexico) are disposable on a White House whim. China has yet another reason to baulk at dealing with such volatility now. It moves the prospect of trade deal settlement even further into the distance.
Yen was a beneficiary on the session, USD/JPY slid from circa 109.60 towards 109.10, not managing (yet) to test the 109 figure. Yen crosses slid alongside, of course. AUD/USD dropped but has since recovered to barely chanegd on the day now. Ditto NZD.
EUR managed to get a good nap in during all this, its little chanegd on the session, as is cable.
The elephant in the room, of course, two of them, are CAD and MXN.
USD/CAD was taken rapidly from under 1.35 to highs circa 1.3540 and its around 1.3530 as I post.
The Mexcian peso, though, it got hammered. Its not an overly liquid trading currency in early Asia (NSS). USD/MXN moved from under 19.2 to around 19.6. Its trading at levels just above 19.5550 as I post.
Bitcoin dropped to around 8000US before staging a recovery to above 8300 and back to mid 8200s as I post.
There was a decent hit of data during the session, in the bullets above (better IP from Japan, but it may be front loading, a poor manufacturing PMI from China ... really poor).
Still to come:
