Forex news for Asia-Pacific trading on November 5, 2019:
- RBA holds the cash target rate at 0.75%, as expected
- Full text of the November 5, 2019 RBA decision
- China wants 15% tariffs imposed on Sept 1 removed in trade deal
- US considers rolling back tariffs Sept 1 Chinese tariffs to seal Phase One deal - report
- Kuroda: I don't think extra fiscal spending would be problematic
- BOJ's Kuroda: BOJ can cut rates, ramp up asset buying and accelerate monetary expansion if needed
- BOJ deputy Amamiya: Now is time to pay attention to downside risks from overseas
- Xi says China needs to tighten protection of intellectual property
- Former US national security advisor John Bolton to testify at Trump impeachment - report
- PBOC cuts rate on 1-year lending facility to 3.25% from 3.30%
- China Caixin services PMI 51.1 vs 51.1 expected
- Fed's Daly: Would take material change in outlook for further accommodation to be needed
- Australia ANZ weekly consumer confidence 113.4 vs 110.4
- Fed's Daly: Tools for next recession include Fed funds, fwd guidance and balance sheet
- CBA October final Australian services PMI 50.1 vs 50.8 prelim
- AiG perf of serices index for October 54.2 vs 51.5 last month
Markets:
- Gold down $3.50 to $1506
- Nikkei 225 up 2.0% in return from holiday
- AUD leads, JPY lags
The RBA helped to lift the Australian dollar by signaling that its comfortable with rates here and that the 'gentle turning point' in the economy continues. AUD/USD was at 0.6880 before the announcement and rose to 0.6900 afterwards.
Yen crosses got a lift from reports on China-US talks saying that Beijing is pushing to get Sept 1 tariffs removed and that he US is debating it. I see this more as a squeeze from China than unequivocally good news but the market likes it as it pushed USD/JPY to 108.75 from 108.60. It was the same thing in all yen crosses, including a 35 pips rally in AUD/JPY.
Cable continues to bounced along the 1.2880 bottom hit late in the US session and didn't show any signs of life with no headlines to account for.
ER/USD briefly fell to 1.1113 in a quick move lower but rebounded to essentially unchanged at 1.1125.
