Forex news for Asia trading on Wednesday 10 November 2021
- Coming up on US data agenda Wednesday - Consumer Price Index (CPI) for October
- China steel price drop to lead to another leg lower for the price of iron ore
- AUD traders - Heads up for Australia's employment report due Thursday - preview
- Australia - Westpac flags a lower unemployment rate, robust rise in hours worked
- Note for the diary (Friday) - China state media to give a briefing on Plenum outcome
- Morgan Stanley recommends short EUR/CAD positions targeting 1.35
- China October CPI 1.5% y/y and PPI 13.5% y/y - both higher
- PBOC sets USD/ CNY mid-point today at 6.3948 (vs. estimate at 6.3952)
- More on Fed’s Bullard expecting two rate hikes in 2022
- China - Goldman Sachs have 2 reasons to be wary of "considerable uncertainty"
- New Zealand preliminary business survey slides lower
- China's President Xi and US President Biden will meet next week. Virtual summit.
- Australia - Westpac Consumer Confidence Index for November +0.6% m/m (prior -1.5%)
- US Treas Sec Yellen comments on the debt ceiling, inflation, recession prospects
- Reuters Tankan - Japanese manufacturers' sentiment hit a 7-month low in November
- White House Economic Advisor Brian Deese says expects vote next week on larger infrastructure package
- ICYMI - Biden extends US ban on investments in firms linked to China’s military
- Trade ideas thread - Wednesday 10 November 2021
Lower US stock markets on Tuesday were a negative input for regional shares here in Asia; Japan, China and Hong Kong all down on the session so far.
The data focus for the session was on Chinese October inflation, both CPI and PPI. These rose sharply, above September rates and above central estimates. The CPI hit its highest y/y since September last year while the PPI hit its highest ever (the National Bureau of Statistics, NBS began this data series in 1996). For the PPI the NBS cited the usual suspects of tight supply in energy and materials.
Federal Reserve St. Louis President Bullard spoke on Tuesday US time. His comments did not attract wide media coverage, reporting only becoming available in the early Asia hours. There is more in the bullets above but the main takeaway is he sees 2 Federal Open Market Committee rate hikes in 2022 (the usual caveats apply). This is something to be aware of as Europe and the US become active. Languid Asian markets have done little with it.
Asia FX has been mainly tightly rangebound with little net change across the majors.
Offshore yuan rangebound also:
