Forex news for Asia trading on Thursday 4 November 2021
- Moody's says headwinds to growth will dissipate in 2022, stable global growth by 2023
- Bank of Japan Governor Kuroda is meeting with new Japanese PM Kishida
- Travel from Hong Kong to mainland China set to begin again in December
- Japan's Trade Minister Kajiyama has asked the US to abolish extra tariffs on steel, aluminium
- China's President Xi says will extend international shipping cooperation
- Oil - Talks with Iran on nuclear deal will recommence on November 29
- PBOC sets USD/ CNY central rate at 6.3943 (vs. estimate at 6.3911)
- JP Morgan estimates that central bank digital currencies to save firms $100bn a year
- Fitch Ratings are forecasting an RBA rate hike in 2023 (with late 2022 possible)
- Australian retail sales, excluding inflation, for Q3 -4.4% q/q
- Australia September trade balance AUD +12.243bn (vs. expected surplus 12.2bn AUD)
- Japan - Jibun Bank / Markit Services PMI for October 50.7 (prior 47.8)
- ANZ forecasts the RBA to end QE in 6 months (May 2022), then a rate hike in H1 of 2023
- New Zealand - ANZ Commodity Price index for October +2.1% m/m (prior +1.5%)
- South Korea's Vice Fin Min says will intervene if necessary
- Japanese government considering easing border controls as soon as Monday
- China's state planner has issued a warning to media on fake (coal) news
- US Pentagon says China's nuclear arms stockpile is growing even faster than thought
- ICYMI - The Federal Reserve will taper from this month, rate of $15bn/month
- Trade ideas thread - Thursday 4 November 2021
- Major indices close higher as Fed tapers but will take it's time
Post-links Paragraph Text Here, don't forget an image.
Coming up ahead:
- Bank of England meeting 4 November 2021 - Bank of America expect a rate hike
- Federal Reserve's Quarles to speak Thursday (US time)
- Bank of England Monetary Policy meeting decision due 4 November 2021 - a line-ball call
The steepening yield curve in the wake of the Federal Open Market Committee announcement and Powell's press conference remained here during Asia trade. Following on for the gains on Wall Street regional indices were stable to firm. Across the FX space it was fairly sedate, after the wait for the FOMC attention shifted to waiting for the Bank of England later Thursday and then the nonfarm payroll report on Friday.
USD/JPY moved to highs above 114.20 but so far has not done much adding to gains beyond there. The USD is also a little better bid against EUR, GBP, CAD while its difficult to discern much net change in AUD and NZD.
Oil was steady after its continued falls overnight. Lower oil is being cited as a result of nuclear talks to recommence with Iran and thus Iran returning to the oil market. I'd humbly suggest this is a flawed narrative - Iran's (potential) return is still a good ways off into the future.
