Forex news for Asia-Pacific trade on October 9, 2020:
- Trump told House minority leader he wanted 'big deal' on stimulus shortly after calling off talks - report
- Pelosi and Mnuchin spoke for 40 minutes today on whether there is any prospect for stimulus
- China Caixin services PMI 54.8 vs 54.3 expected
- China golden week air passenger volumes were at 91% of last year
- Japan fin min Aso: Coronavirus situation getting more contained
- Australia owner-occupied loan values rise 13.6% m/m vs -1.0% exp
- Japan household spending -6.9% y/y vs -6.7% expected
- Trump can return to public engagements Saturday, doctor says
- Fed's Kaplan: If there's no more fiscal relief, the recovery will slow
- Gilead releases data on Remdesivir that shows larger improvements
- Hurricane Delta upgraded to Category 3 storm ahead of tomorrow's landfall
- ANZ Sept truckometer heavy +4.1% vs -6.5% prior
- Mike Pence cancels trip to Indiana after Pelosi questions Trump's mental health
Markets:
- Gold up $17 to $1910
- WTI crude oil down 14-cents to $41.05
- Nikkei 225 down 0.4% to 23559
- NZD leads, USD lags
The upbeat mood from US trading extended on more stimulus headlines. The market doesn't seem to care that McConnell is the missing piece of the puzzle in any deal.
A big winner was gold with prices up nearly 1% to start the day. The dollar sagged on spending talk while the kiwi started strong as it shook off yesterday's negative rate cut talk.
Similarly, USD/CAD shrugged at negative rate talk from Macklem earlier, after he said it was in the tool box. Instead, the pair fell to a two-week low on growing expectations that the US is going to spend hefty dollars on stimulus now or later.
One disappointing headline came from Japan where consumer spending numbers were soft. The China PMI was good but passenger air travel numbers from the holiday week showed that not all is back to normal in China, despite months without any significant outbreaks.
There is some concern creeping into markets now the Nikkei turning lower after a strong start. Some of that is yen strength but it's worth watching.
Have a great weekend, Eamonn will be back Monday.
