Forex news for Asia trading on Wednesday 3 November 2021
- Magnitude 5.9 earthquake Valparaiso, Chile
- Oil - OPEC+ is expected to ignore US & other calls for increased output
- Its a packed agenda coming up in the US on Wednesday - focus is the FOMC
- PBOC Governor comments on personal data protection
- Hong Kong airport to segregate China flights to help counter COVID-19 spread
- Heads up for Chinese President Xi Jinping to speak Thursday, November 4
- BlackRock's Rieder said he expects the Fed will begin raising rates in September 2022
- China Caixin/Markit PMI for October, Services 53.8 (expected 50.7)
- RBA release their 'Chart Pack' summary
- PBOC sets USD/ CNY reference rate for today at 6.4079 (vs. estimate at 6.4041)
- China coronavirus new cases rise in past 24 hours
- South Korean PM says cannot afford another round of universal COVID-19 relief grants
- Australia Building Approvals for September -4.3% m/m (expected -2.0%)
- Latest Reuters poll show analysts still looking for higher currencies against the USD
- TD on trading the FOMC - 'tapering will be announced'
- Its a Japan holiday today, Wednesday 3 November 2021
- China coronavirus - around half the flights to and from Beijing were cancelled Tuesday
- Australia's Commonwealth Bank (CBA) will allow its customers to hold and use bitcoin and other crypto
- RBNZ Governor Orr says the jobs market data is extremely volatile at present
- Australia - Markit Services 51.8 and Composite 52.1 PMI for October (final)
- New Zealand Q3 Unemployment rate 3.4% (expected 3.9%, prior 4.0%)
- Australia AiG Construction PMI for October 57.6 (prior 53.3)
- More on China urging its people to stockpile food
- Trade ideas thread - Wednesday 3 November 2021
- Private oil survey data shows headline build in crude oil inventory
A Japanese holiday and the approaching US Fed's Federal Open Market Committee combined to dampen FX movement during the session in Asia.
The data focus was on the New Zealand Q3 employment report. This showed the unemployment rate hitting its equal lowest ever, 3.4%. The participation rate jumped during the quarter, adding further to this stellar report.
The Governor of the Reserve Bank of New Zealand, Adrian Orr, held a press conference fifteen minutes later. This was to respond to the release of the RBNZ Financial Stability report earlier in the NZ day but questions of course were asked how the Bank was expected to respond to the (equal) strongest ever. Orr was wary of the report saying labour market data had been volatile and also expressed caution on other growth data. The NZ jobs report had spurred a renewed bout of speculation on the potential for a 50bp rate from hike from the RBNA when it meets next (November 24) but Orr's circumspect comments poured a little cold water on such talk.
The New Zealand dollar is a little better bid on the session, but only up net circa 10 points from late US levels.
Something to keep an eye on is mounting coronavirus cases in China. China is maintaining a 'Covid-zero' response to outbreaks. It is putting movement restrictions in place again, which threatens once more to impact the economy. Cola prices in China stabilised a little today (bounced) after basically halving in past weeks.
Across major FX it was a subdued movement day. GBP, yen and CAD are all just a little against the USD. Oil dripped a little lower.
NZD/USD higher just a little on the jobs report and sideways since:
