Forex news for Asia trading on Wednesday 17 November 2021
- China media report that Evergrande's online sales platform has closed some units
- JP Morgan EUR/USD forecasts for the quarters ahead (and for some other FX)
- Federal Reserve speakers coming up on Wednesday 17 November 2021
- Goldman Sachs still bearish AUD against NZD over the next 12 months
- Indian media report India may allow crypto as an asset but not as a currency
- WSJ reports - US to sell $56m in cryptocurrency seized in BitConnect fraud scheme
- US media reports neither US President Biden nor any other US government officials will attend the Beijing Games
- China is accelerating plans to replace US & foreign technology: cloud, semiconductors & more
- PBOC sets USD/ CNY mid-point today at 6.3935 (vs. estimate at 6.3919)
- European Central Bank events coming up Wednesday 17 November 2021 - Lagarde speaking
- Australia Wage Price Index for Q3 2021 0.6% q/q (vs. expected 0.5%)
- New Zealand to open domestic travel to and from Auckland from December 15
- Japan Core Machinery Orders for September 0.0% m/m (expected 1.8%)
- Japan trade balance for October Y -67.4bn (expected Y -310bn)
- Australia - Westpac leading indicator for October 0.16% m/m (prior -0.02%)
- US President Biden says he will be naming the new Fed Chair in "about 4 days"
- Japan's government looking at revising capital gains tax rules next year
- More again from Fed's Daly - says has a strong bias to stick to the current planned taper pace
- ICYMI - Bank of Canada deputy says rate hike may not come as soon as expected
- HK media report that the US wants China to join the US in releasing oil reserves
- US Treas Sec Yellen says the US government can be financed until December 15
- RBA Gov Lowe spoke Tuesday - told analysts, markets they are wrong about rate hikes
- ICYMI - OPEC chief Barkindo says the oil market will flip to surplus in December
- Trade ideas thread - Wednesday 17 November 2021
- NZ PPI data for Q3: Output index +1.8%, input +1.6%
- Private oil survey data shows build in headline crude oil inventory
- Fed's Daly says running a sustained expansion gives people time to come back to the jobs market
The higher dollar that continued in US time on Tuesday did the same here in Asia Wednesday, with nearly across the board gains. As I was preparing the wrap a renewed bout of currency selling hit, EUR/USD triggering substantial stops just ahead of and then under 1.1300, and cable under 1.3420 (and briefly venturing under 1.3400).
USD/JPY rallied early in the day to just above 114.90 while USD/CHF is above 0.9320 as I update.
The USD index hit its highest since July on 2020 during the session.
News flow was non-impactful. On data, we had the much-awaited Q3 wages data from Australia today which, at 2.2% growth y/y is well below the 3% the RBA sees as necessary to contribute to sustainably on-target inflation. AUD/USD subsided a little on the data release and has since extended that loss, albeit not in a large range and in a continuation of its losses overnight, as already referred to. NZD/USD was not hit so hard, further rate hikes ahead from the RBNZ are providing some monetary policy divergence bid support for it against the AUD.
EUR/USD hit by stop-loss sellers circa 1.1300. The 1-minute candle chart shows you the pressure heaped on, and under, the figure:
