Forex news for Asia trading Thursday 31 October 2019
- China and US trade negotiators to hold a phone call on Friday
- More on the BOJ statement - forecasts and more
- BOJ announce September policy decision - policy held steady
- BOJ - is a change in policy coming up? The announcement is coming later than usual
- HSBC has cut its Hong Kong prime lending rate for the first time in 11 years
- RBA monetary policy meeting Tuesday November 5 - on hold expected, but …
- The top political meeting of the year is underway in China - what will come of it?
- China manufacturing PMI recap - 6 months in contraction now
- Early heads up - US clocks go back one hour this coming weekend
- PBOC sets USD/ CNY reference rate for today at 7.0533 (vs. yesterday at 7.0582)
- FX option expiries for Thursday October 31 - for the 10am NY cut
- China official PMIs for October. Manufacturing 49.3 (vs. expected 49.8)
- Australia Private Sector Credit for September: +0.2% m/m (expected 0.3%)
- Australia terms of trade data for Q3. Export prices +1.3% q/q, import prices +0.4% q/q
- Australia Building Approvals for September +7.6% m/m (expected 0.0%)
- Keep your eye on cable - GBP/USD knocking on the door for a pop?
- Citi on a likely USD turn
- UK - GfK Consumer Confidence for October: -14 (expected -13)
- New Zealand - ANZ survey October Business Confidence: -42.4 (prior -53.5)
- Japan Industrial Production for September (preliminary): 1.4% m/m (expected 0.4%)
- Its started … UK election poll shows Cons 8 points in front of the other lot
- South Korea central bank says the Fed rate cut will support global growth
- BOA/ML technical analyst recommends shorting USD/Yen
- Japan press report the BOJ is considering adjustments to forward guidance in today's statement
- Westpac forecast an RBNZ rate cut in February (previously calling a November cut)
- New Zealand Building Permits for September : +7.2% m/m (prior +0.8%)
- Never miss the next opportunity on Bitcoin
- Goldman Sachs goes cold on GBP longs ahead of the UK general election
- Here's a technical analysis AUD/USD trade recommendation (stop, profit)
- (very soon to be) ECB head Lagarde says Europe budget agreement is a good step
- Trade ideas thread - Thursday 31 October 2019
The big influence on the day here in Asia was the follow-through from the FOMC rate cut Wednesday (oh, there was the BOJ policy decision, I'll come back to that).
The USD lost further ground as Asian markets became active today, pretty much across the board. USD/JPY dropped 25 odd points while AUD and NZD were gainers. GBP, CHF, gold were all up against the USD also. CAD a bit of a laggard.
NZD/USD was helped along early by a revised Reserve Bank of New Zealand call from Westpac, the bank pushed out its expectation of the next RBNZ interest rate cut from November to February. NZ building permits were also a solid data point today. Business confidence improved, crawling a little way up the s-bend ….
Australian data for the session also included building permits and the data for these was also solid, an impressive beat (in an admittedly volatile data set). Other data was not quite so good, the private sector credit report for September came in at a record low of 2.7% y/y. As I already said though, AUD is up on the session.
China official PMIs for October were published today, manufacturing was a very bad miss indeed.
And so to the Bank of Japan. The Bank left policy unchanged but the key point was an alteration to forward guidance that, in effect, signals there is more easing to come from the BOJ. Yen response was small only, USD/JPY had already dropped prior to the announcement and as I update it has revisited the earlier lows. Bank of Japan Governor Kuroda press conference is at 0630GMT - stay tuned!
