Forex news for Asia trading on Thursday 11 November 2021
- Heads up for the US bank holiday Thursday 11 November 2021 - Veterans Day
- Australian bank NAB raises its fixed home loan rate
- Goldman Sachs 'top trades' for 2022 include short AUD/CAD, long copper & Brent
- More on Japan's PPI inflation data hitting a 40 year high
- Newly appointed Japan foreign minister says its important to build ties with China
- Axios reports Manchin could hold Biden’s Build Back Better agenda until next year over inflation worries
- PBOC sets USD/ CNY central rate at 6.4145 (vs. estimate at 6.4110)
- S&P on spreading contagion in China's residential property market
- Australian dollar drops on the big miss for jobs data
- Australia - October jobs added: -46.3K (vs. +50K expected) & Unemployment rate 5.2% (4.8% expected)
- UK data - RICS house price price balance 70% (expected 68%, prior 68%)
- Japan October PPI +1.2% m/m (expected +0.4%)
- Musk has filed his 'Form 4' - sold Tesla (TSLA) shares as per his Twitter promise
- Indications at least some Japanese firms are planning to hike prices
- South Korean central bank governor says hot inflation to continue for the time being
- Fed's "transitory" mantra repeated after the hot CPI data
- Trade ideas thread - Thursday 11 November 2021
- New Zealand Food Price (inflation) for October -0.9% m/m (prior 0.5%)
- Crypto - Bitcoin volatility to the downside in very early Asia
The news that Evergrande had reportedly paid its interest on bonds provided a positive input for sentiment during the session here, resulting in mixed performance across regional equities. The Shanghai Composite inched a little higher but Japan and Hong Kong did not fare so well. Coal and iron ore markets in China rose.
The mild improvement in tone was not really evident in the forex space though, with a rising USD after Wednesday's scorching US CPI results carrying on in Asia, albeit in a limited range. EUR, GBP, and CHF dipped a little but as I post are now back to barely changed on the day.
AUD and NZD are weaker. AUD/USD was not helped by a poor employment report with a loss of jobs recorded in October against the gain expected, and a higher unemployment rate. Taking a look at the report, though, there are some caveats to the bad news. The survey period was very early, September 26 to October 9 which was before reopening got underway to much extent in Australia's two most populous states. The report has left us awaiting the November results in a month's time which is expected to be much better (see bullets above for the details, the relevant posts are in bold in the list).
From Japan today we had wholesale inflation for October, PPI. It hits its highest y/y in forty years. USD/JPY has inched a little higher on the session - the Bank of Japan is a long way from even thinking about tightening policy. USD/JPY was assisted by higher US yields also.
Elon Musk filed paperwork showing he had made good on some of his promise to sell Tesla shares if a twitter poll advised him to do. Musk sold circa 3m shares of TSLA, well short of the 10% promised he'd sell, but perhaps its a start. Curiously, the filing showed the sale was pre-planned, from September 9, which made the Twitter poll irrelevant. Ever the showman is Mr. Musk.
