Forex news for Asia trading Friday 8 May 2020
- US statement now on US-China trade talks (Liu He, Lighthizer, Mnuchin phone call)
- US and China trade representatives held a call says Xinhua
- Japan economy minister Nishimura: Lifting state of emergency is within sight
- NZ finmin Robertson says there is no need for the RBNZ to buy bonds direct from the government
- RBA SoMP: Projects GDP -6% in 2020 and +6% in 2021
- PBOC sets USD/ CNY reference rate for today at 7.0788 (vs. yesterday at 7.0931 )
- FX option expiries for Friday May 08 at the 10am NY cut
- Japan Jibun Bank Services PMI April (final): 21.5 (prior 33.8)
- Heads up for a UK market holiday today, Friday 8 May 2020
- Nonfarm payrolls estimates - wide range
- Japan wages data for March: Labor cash earnings +0.1% y/y (vs. expected 0.1%)
- China Securities Journal says the PBOC might cut rates in May
- Japan considering more stimulus options - business rent relief
- UK - GfK Consumer Confidence for April, final: -33
- Here's why EUR/JPY is heavy (and where to target)
- New Zealand government financial statements show budget deficit - unsurprisingly
- White House Navarro renews his verbal attack on China
- Goldman Sachs on oil - expects a strong recovery in demand
- Long term gold bulls are looking for a move above $1921, near term not as strong though
- Goldman Sachs nonfarm payroll preview: 14% unemployment rate
- ICYMI: JP Morgan forecast for $100 oil within 2 years
- North Korea says South Korean military drill is a provocation
- Ford is to resume production in North America from May 18 - phasing it in
- Trade ideas thread - Friday 8 May 2020
- M4.8 earthquake near Tehran, Iran
- More from Fed's Harker - surveys show manufacturers do not feel they are falling off a cliff
- Fed's Harker warns of a second US recession in 2021 if too quick to reopen
The only thing uglier than today's (likely) job loss number due from the US is the headline to this post. What a world. The Nonfarm Payroll report is due at 1230 GMT with the median consensus estimate centring around a 22 million job decline. The range in the survey is very wide (see bullets above for more), reflecting the uncertainty out there.
Currencies had a good session with a broad decline for the USD. Speculation (and market pricing) swirls about negative rates despite Fed officials' denial.
Later in the session news crossed that US and China trade representatives had a phone discussion, pledging further implementation and cooperation.
AUD and NZD were stand-out performers, well higher during the session. EUR, GBP, CAD, CHF all gained against the USD also while USD/JPY was more range bound.
The RBA issued their quarterly SoMP (see bullets above) outlining updated forecasts not far removed from what Governor Lowe outlined on Tuesday. Australian PM Morrison issued a 3 phase roadmap for easing coronavirus restrictions - exact timings of the steps will be left to individual states.
The boys are back in town (via videolink, of course)
