Forex news for Asia trading on Friday 3 December 2021
- Japan has issued calls to power generators to ensure they have enough fuel for winter
- Japan authorities say they''ll deploy fiscal spending without hesitation
- The US Senate has voted to pass the bill to fund the government
- China Caixin services PMI for November 52.1 (prior 53.8)
- Los Angeles county reports its first Omicron COVID-19 case
- China's ambassador to the US calls for abolition of tariffs on Chinese goods
- Forecasts for the RBA include an end to bond-buying in February, rate hike 2022
- PBOC sets USD/ CNY reference rate for today at 6.3738 (vs. estimate at 6.3739)
- Google is indefinitely pausing its January return-to-office plan globally
- Japan services PMI for November 53.0 (vs. 50.7 prior)
- Hawaii confirms one case of COVID-19 Omicron variant
- ICYMI - OPEC+ to proceed with its planned output increase for January
- Analysts expect the RBA will hike in Q1 2023 (from earlier expecting Q2 2023)
- New US COVID-19 rule - incoming travellers will need a test 1 day prior to departure
- New York state has found 5 cases of the Omicron COVID-19 variant
- November US Nonfarm Payroll report due Friday 03 December 2021 - what to expect
- Another internal border closure in Australia - Omicron response
- The US and EU have issued a joint statement with strong concerns over China
- Australia November Markit Services PMI 55.7 (prior 55.0)
- Trade ideas thread - Friday 3 December 2021
- Australia AiG Construction PMI for November 57.0 (prior 57.6)
US equity index futures slid lower on the session, beginning with the news crossing wires that 5 COVID-19 Omicron cases were reported in New York state. Yes, not a typo, 5. S&P500 futures dropped on Globex.
After steadying equity index futures were sold off once again as the news compounded with 1 case in Hawaii and 1 in LA County (yes, no typos again, 1 and 1). Its not like the slide was anything near the magnitude of the Wednesday drop into the cash market close but it was noticeable regardless.
FX did not show much of a response on the NY report but soon followed along with the equity moves, the USD gaining against AUD, NZD, CAD. EUR/USD, GBP/USD and USD/JPY have been not as clearly impacted, with smaller moves only. Indeed, as I post EUR/USD and USD/JPY are barely net changed on the session.
Accompanying the reports of numbers of new cases were also further details about how the cases were on the mild side. Given the tiny number of cases its still too early to draw significant conclusions.
In other news out of the US both houses of Congress passed the bill approving ongoing funding for the government. A shut down would have occurred otherwise. Once the bill is signed by US President Biden funding has been secured through until February 18.
Wariness over Omicron may reduce the desire to hold risk positions over this coming weekend. At least with crypto you can keep trading though:
