Forex news for Asia trading Friday 6 March 2020
- Japan Securities Clearing Corporation makes an emergency margin call on LT JGB futures
- What happens in Vegas stays in Vegas. Except for this Canadian who returned home with coronavirus
- Japan fin min official on USD/JPY hitting 105 big figure - no comment on FX levels
- South Korea says it has transparent control over coronavirus, unlike Japan
- Goldman Sachs says "yen has substantial further upside", USD/JPY could hit 95
- Rumour - OPEC now recommends 1.5m bbl/d cut to the end of the year, not just for Q2
- An Australian family have accidentally bought 2,300 toilet rolls
- Boeing 737 MAX certification flight could come within 'a few weeks': FAA administrator
- Asian Development Bank says coronavirus impact could cut global growth by 0.1 to 0.4% this year
- Singapore government officials say coronavirus “starting to look like a global pandemic”
- Fed's Williams says Fed remains flexible, ready to make adjustments
- South Korea reports 518 new coronavirus cases, total now at 6,284
- Mainland China new coronavirus cases 143, added deaths 30
- Fed's Kashkari says he views this week's rate cut from the Bank as insurance
- PBOC sets USD/ CNY reference rate for today at 6.9337 (vs. yesterday at 6.9403)
- FX option expiries for Friday March 06 at the 10am NY cut
- Fed's Kaplan: Will monitor, assess possible changes to Fed's plan to curtail bond purchases, reop operations
- Australian PM Morrison says estimates healthcare cost of coronavirus at AUD 1 bn
- Australia Retail Sales for January: -0.3% m/m (expected 0.0%)
- Australian airline QANTAS is cancelling more flights to Asia
- New York officials say 2,733 people are under coronavirus quarantines in New York City
- Japan Household spending for January -3.9% y/y (expected -4.0%)
- Fed's Kaplan - if we have a material slowing, tightening of fin conditions, accommodative policy will help
- Japan wages data for January show a surprise jump in real earnings
- The Australian Services PMI for February dropped to 47.0 from January's 47.4
- BOJ may take steps this month to ease financial strain on virus-hit firms
- Fed's Kaplan says the spread of coronavirus increases risk to the economic outlook
- One for the US equity folks - Trump has been briefed / warned on security risk from Infineon Cypress deal
- Goldman Sachs preview of the US nonfarm payrolls data due Friday
- New Zealand Q4 construction work falls 0.8% q/q vs expected +0.6%
- Trade ideas thread - Friday 6 March 2020
- Coronavirus - US VP Pence finally admits US does not currently have enough testing kits
- Another sharp day down in the major indices
- Australian Prudential Regulation Authority head says financial system positioned to handle short-term volatility
Risk was once again on the retreat in Asia with yen and CHF benefiting. The worsening of the coronavirus outbreak (plenty of bad news to come from the US, still lagging on any level of responsible testing for the virus and leaving those trying to combat its spread in the dark) is the background but the immediate trigger for the session was a few words in a report from the New York Times that >2,700 are self quarantining in New York City alone.
With a stronger yen and lower AUD AUD/JPY was (of course) weak but it has managed a bounce … or a bit of sideways at least:
NZD tracked more or less along. EUR and GBP remained little troubled, both in small ranges and not dropping.
There was other news both coronavirus related and not, and data from Japan and Australia (see bullets above). Plenty of Fed talking heads also as well as US President Trump. The Fed comments were mixed but between the lines it does appear a further cut(s), perhaps as soon as March, are not to be ruled out.
