Forex news for Asia trading Friday 21 August 2020
- Westpac on the path to take NZD/USD to 0.63
- Chinese officials are clamping down on speculative stock and metal trading - fearful of backlash if prices drop
- Australia preliminary retail sales data for July +3.3% m/m
- PBOC sets USD/ CNY reference rate for today at 6.9107 (vs. yesterday at 6.9274)
- FX option expiries for Friday August 21 at the 10am NY cut
- NZ reports 11 new coronavirus cases today - decision on Auckland lockdown coming Monday
- Top US FDA official vowed to resign if Trump administration approves an unproven Covid-19 vaccine
- Supportive factors for the price of gold are still in place - further upside.
- Japan preliminary PMIs for August: Manufacturing 46.6 (prior 45.2)
- RBNZ Chief Economist Ha: Reimposition of Auckland lockdown played a part in August policy decision
- Coronavirus - Japan is to ease re-entry restrictions on foreign residents
- Pfizer says its COVID-19 vaccine is on track to seek regulatory review in October
- South Korea first 20 days of August exports -7% y/y
- Does technical analysis work, or should it be in the same category as astrology and voodoo?
- Japan CPI data for July, headline 0.3% y/y (vs. expected 0.3%)
- UK data - Gfk Consumer Confidence (August): -27 (vs. expected -25)
- Australia preliminary PMIs (August): Manufacturing 53.9 (prior 54.0) & Services 48.1 (prior 58.2)
- Australia (Victoria state) report 179 new confirmed coronavirus cases
- Pelosi says the time is not right for a smaller coronavirus economic relief bill
- Canada to conduct flight test for Boeing 737 MAX next week
- Weaker USD to persist but still "risk of retracements of the recent uptrends in EUR/USD"
- India, Japan and Australia have begun discussions on reducing reliance on China
- Coronavirus - UK city Birmingham may be the next for lockdown after case surge
- Deutsche Bank wary on further EUR/USD appreciation - advise longs to take profit
- Trade ideas thread - Friday 21 August 2020
- US Sec State Pompeo on Iran again - says it'd be an enormous mistake not to extend conventional arms embargo
- Fed Chair Powell to speak Thursday August 27 (Jackson Hole)
Some positive coronavirus vaccine news crossed wires during the session which saw risk improve on the boost to sentiment. The news related to Pfizer's COVID-19 vaccine efforts, the firm saying they are looking to seek regulatory approval in October and if so:
- would have 100m doses ready by year end
- and 1.3bn by the end of next year
This was pretty much the only news of note to cross during the session, with a few other pieces about of not much impact:
- further comments from Pompeo on Iran sanctions
- E3 nations (UK, France, Germany) rejecting Pompeo's sanctions
We had more out of the RBNZ, not adding much to what we already knew though.
Also from NZ, Cabinet is to consider the Auckland lockdown on Monday (August 24) as news on the outbreak abating there gives some sign of encouragement.
We had preliminary PMIs from Australia and Japan, not impacting FX too much upon release though.
On the major currency board there is not much net change to report. Some early USD weakness (only in a minor range) has been retraced.
From the PBOC today, the Bank used 14 day reverse repos to inject liquidity (in addition to 7 day maturities) in a bid to further enhance banking system liquidity.
Fed Chair Powell will speak on the bank's policy framewrork next week:
