Forex news for Asia trading on Tuesday 2 November 2021
- Australian dollar lower in the wake of the RBA decision
- RBA November 2 monetary policy announcement - ends April 2024 Bond 0.1% target
- Chinese authorities have urged families to keep stores of daily necessities heading into winter
- BOJ September meeting minutes - recap
- Japan is considering providing subsidies to firms to raise wages
- Musk says on Hertz: I’d like to emphasize that no contract has been signed yet.
- Awaiting the RBA policy statement due very soon - a reminder on slow wages growth
- Japan's finance minister notes that the yen is weakening but says he has no comment on FX levels
- PBOC sets USD/ CNY mid-point today at 6.4009 (vs. estimate at 6.4003)
- CBA watching circa 0.7380 support on AUD/USD in the wake of the RBA statement today
- Singapore is seeking to lock itself in as a global cryptocurrency hub
- RBA policy meeting Tuesday 02 November 2021- preview
- Australia's largest population state has accelerated easing of restrictions
- BOJ monetary policy meeting minutes (September meeting)
- RBA policy statement due Tuesday 02 November 2021 - preview
- South Korea October core inflation data the highest since December 2015
- Goldman Sachs RBA preview (and watching for AUD/CAD downside ahead)
- Cleveland Federal Reserve branch inflation rate indicator surges (again, but more)
- Australian Inflation Expectations hit their highest for seven years
- Australia Consumer Confidence weekly index 108.4 (prior 106.8)
- New Zealand Building Permits for September -1.9% m/m (prior +3.8%)
- Brexit - UK / France fishing dispute talks will continue Thursday
- AUD traders head up - its a partial holiday in Australia today. And the RBA is meeting.
- NZD traders - heads up for the GDT dairy auction coming up Tuesday 02 November 2021
- What You Should Know About the Stages of Grief - RBA monetary policy preview edition
- Trade ideas thread - Tuesday 02 November 2021
- RBNZ Governor Orr says unsustainable house price rises pose a monetary, financial stability challenges
Forex moves were minor during the early part of the Asian day with traders awaiting
- the Reserve Bank of Australia on Tuesday
- and the Federal Open Market Committee on Wednesday
News and data flow was light and did not move rates around to any significant degree.
USD/JPY rebounded just a little from its US lows to trade a little above 114.10 but soon gave it all back, dropping under 114.00 (yes, small range only).
And so to the RBA statement. The Bank confirmed it had ended targeting the April 2024 Bond at 0.1%. This was never in doubt, they lost control of it last week and the confirmation from them smacks of a bit of a face-saving attempt.
Otherwise it lefts its QE purchase amount of 4bn AUD per week unchanged. The statement expressed the Bank was remaining patient on developments in the economy and said it needed to see wage growth ahead (repeating this for the umpteenth time).
The Australian dollar dropped sharply on the RBA announcement and as I post is sitting just under 0.7500 from highs circa 0.7530 earlier in the session. Across other major FX pairs there is not much change.
Still to come is a press conference from RBA Governor Lowe at 4pm Sydney time (0500GMT).
