The lead in to the Asia session:
Forexlive Americas FX news wrap: Powell says Fed will take tightening at measured pace
- Taiwan semiconductor firm TSMC says its checking the impact of brief power dips
- Japan automakers move to halt Russia production, shipments
- Japan Air Lines has cancelled all flights scheduled to and from Europe Thursday
- Taiwan's power outage has slashed internet connectivity by more than 2/3
- India considering rupee-ruble bilateral trade between Russia and India to bypass sanctions
- Power cut across Taiwan, affecting Taipei and southern Taiwan
- China February services PMI 50.2 (expected 50.7 prior 51.4)
- Moody's joins Fitch in cutting Russia's rating to junk
- BOJ's Nakagawa says impact of supply constraints appeared to have peaked ... but
- PBOC sets USD/ CNY reference rate for today at 6.3016 (vs. estimate at 6.3012)
- Biden administration is "looking at ways" to cut US consumption of Russian oil
- Australian January building approvals collaped
- Australian trade data for January: exports +8% m/m while imports -2% m/m
- Japan February services PMI 44.2 (prior 42.7)
- ICYMI - Tech giant Oracle says its "suspended all operations in the Russian Federation""
- Biden says Russia is responsible for human rights abuses
- New Zealand - ANZ Commodity Price index for February: +3.9% m/m (prior +1%)
- Russian military deaths from invading Ukraine vary depending on who you ask
- Russia is to be deleted from all FTSE equity indexes
- US Senator Rubio on predictions of martial law for Russia
- Russia may impose martial law after emergency meeting called for Friday
- MSCI to remove Russia indexes from Emerging Markets status
- The World Bank has stopped all of its programs in Russia and Belarus
- Fitch downgrades Russia and warns on FX intervention
- More from Fed's Logan - markets are functioning in an orderly way
- Australian February services PMI 57.4 (January was 46.6)
- Trade ideas thread - Thursday 03 March 2022
- Reports that the US has delivered hundreds of Stinger surface-to-air missiles to Ukraine
- Fed's Logan says the impacts of the Ukraine war will take time to become clear
- Australian construction PMI 53.4 in February (prior 45.9)
If you scan across your charts of major FX rates you’ll assume there wasn't much for news, data, nor central banks in Asia today. But, there was plenty. Check out the bullets above, but in brief:
- The UNHCR said one million refugees have now fled Ukraine to neighbouring countries.
- MSCI and FTSE Russell are cutting Russian equities from widely-tracked indexes.
- Fitch & Moody's slashed Russia's sovereign rating to junk
- Russian forces have overtaken Ukraine’s southern city of Kherson.
- Taiwan suffered a major power and internet outage (news like this from Taiwan is viewed very carefully indeed with markets on edge about a China move on the island with Russia’s invasion of Ukraine – regardless of how far-fetched this might seem).
- Japan Airlines cancelled all flights to and from Europe on Thursday, citing concerns over Ukraine and risks to airlines. JAL: and ANA have said before they are considering routes that avoid Russian airspace.
On the data front we had services PMIs from the region (these do not attract the same focus as do manufacturing PMIs though) and, of more note, from Australia:
- The trade surplus widened sharply to AUD12.9bn in January. It had narrowed in the recent months prior. Exports accelerated on commodities. Imports fell, both capital and intermediate goods down .
- Building approvals had their largest one month decline since the data started in July 1983. High density approvals fell to their lowest since July of 2012.
On the central bank watch it was a BOJ monetary policy board member saying the energy price spike may push Japan's inflation near the BOJ's 2% goal, albeit temporarily (where have we heard transitory before?).
The USD has added on a few points against JPY, AUD, NZD and EUR. GBP/USD is more resilient though.
Oil ... higher again:
