Forex news for Asia trading Monday 9 September 2019
- Westpac's fair value model for AUD/USD has mid-point currently at 0.68
- Goldman Sachs prefer short USD/JPY over short EUR/JPY
- Oil - OPEC+ JMMC meeting on Thursday
- NZ GDP data due next week - after today's data forecasts are being revised down
- China state media: China will not tolerate attempts to separate Hong Kong from China
- China Labor Watch says Apple and Foxconn broke labor laws in production of the iPhone
- PBOC (in effect) drains yuan supply today by approx. 56bn yuan
- Australia home loans data for July: +4.2% m/m (expected +1.5%)
- PBOC sets USD/ CNY reference rate for today at 7.0851 (vs. yesterday at 7.0855)
- FX option expiries for Monday September 9 at the 10am NY cut
- China continues to ramp up its gold reserves
- BoE official says Bank has properly prepared lenders for shock of Brexit
- Boris Johnson signals government might have to accept a further 3-month delay to Brexit
- More Japan data - July BoP current account
- Japan (final) Q2 GDP 1.3% annualised basis
- China's Global Times says likely more reserve requirement ratio (RRR) cuts this year
- KPMG forecasts no-deal Brexit recession in 2020
- Following the PBOC RRR cut on Friday, analyst tips a lower MLF interest rate
- With Brexit approaching UK 'think tank' warns "Now is the time to plan for the next recession"
- NZ data - Manufacturing activity and sales volume both fall in Q2
- Fed rate cut this month still on track after Friday's NFP
- Here is UK PM Johnson's cunning plan to stop Brexit extension beyond October 31
- New Zealand's Financial Markets Authority warn on Skyway Capital - exercise "serious caution"
- EU officials adamant on no further Brexit extension
- WSJ announce the winner of the US-China trade war: Australia
- Big German banks warn against further rate cuts (expected from the ECB this week)
- ICYMI - China trade balance data released over the weekend showed a decline in exports again
- Oil - Weekend news that Saudi have fired energy minister Khalid al-Falih
- Monday opening FX rates - indicative foreign exchange prices - 9 September 2019
Weekend:
- Can you imagine what the oil market would look like the day after this?
- China trade balance data for August - surplus comes in below median estimate
- AUD/JPY longs were the top trade last week
- Five tips for when you are struggling in FX trading
Data out of China over the weekend showed further relative weakness in exports from the country. The weak data was a negative for risk FX in the early hours but the flip side with weak China data is always the expectation (most often justified) that it'll prompt stimulus moves (Friday's RRR cut an example).
There was other news hitting over the weekend, of most interest to GBP traders were continuing developments in Brexit. While we await the UK day and the news it'll bring The Times reported PM Johnson may have accepted an extension to the October 31 exit date is inevitable. Again, though, we await Monday news to see how this progresses. GBP did manage to recover its early losses, but only on a retrace basis at this stage as it site mid-range for the session.
AUD/USD, too, recovered its early Monday loss, with housing finance data for August coming in strong and giving it a boost (and ignoring the fall in business financing …. ugh)
Overall it was a session of small ranges and not a lot of net change.
