Forex news for Asia trading Monday, May 6 2019
- Stock markets - the big Trump sell off
- Australian jobs ads in April fell for a 6 month in a row
- China press report China Vice premier Liu He very unlikely to got to US for trade talks this week
- NZD traders - NZ Treasury says H2 growth may be slightly under forecast
- China - Caixin / Markit Services PMI: 54.5 (expected 54.2)
- PBOC to lower RRR for smaller banks next week
- PBOC sets USD/ CNY reference rate for today at 6.7344
- Australia - monthly inflation gauge for April: 0.2% m/m (prior 0.4%% & 1.8% y/y (prior 2.1%)
- New Zealand: ANZ Commodity price index for April: 2.5% (prior +4.1%)
- Iran: US National Security Advisor Bolton says deploying bomber task force
- Goldman Sachs says it sees a 40% chance of US raising China tariffs on Friday (but ... )
- Rumour now is China has cancelled the trade talks (no longer just considering cancelling)
- China yuan (offshore CNH) is hitting it lowest since January on US trade war escalation
- China is now considering cancelling this week's trade talks with the US
- Canada - China trade war. Canada wants help from the US ('cause they are doing so well, right)?
- ICYMI - weekend missile tests by North Korea
- Brexit - UK PM May has held secret discussions over a three-way second referendum
- US equity futures open lower in Sunday trade - here's why ICYMI
- UK press front page - Labour MPs ‘will not back Brexit deal without second referendum ‘
- Trump to announce new Iran sanctions this week (report via Axios)
- Monday morning early spit ball - how will China react to Trump's tariff hike tweets?
- Trump was told by aides that significant hurdles remain to reaching trade deal with China
- Trade ideas thread - Monday 6 May 2019
- ICYMI - US President Trump threatens higher tariffs on Chinese goods
- Monday opening FX rates - foreign exchange prices, early indications
- Pres. Trump: China tariffs will go up to 25% on $200B of goods on Friday
US President Trump tweeted out a threat to raise tariffs on goods imported from China, sending yen crosses and stock markets into a downward spiral. Flows into yen and out of EUR, AUD, NZD, GBP and more began early on Monday, sending yen crosses much lower (to varying extents).
EUR and GBP dropped, but others dropped more and as markets gained a little more liquidity EUR/USD and GBP/USD covered their gaps. Both have since dropped away again though, GBP to a great extent that EUR.
AUD, NZD and CAD have been amongst the weakest. Offshore yuan (CNH) was very weak indeed. The weakness, though, was not reflected in the onshore yuan mid rate setting from the PBOC.
China had been closed Wednesday, Thursday and Friday last week and reopened today for trade. Stockmarkets were hammered lower, CSI300 and Shanghai Composite both down more than 5% at stages. Other regional stock markets saw declines also. US Globex trade saw US indexes hit hard lower also.
There has been no official response from China although there are strong indications that the planned visit to Washington by Vice Premier and lead trade negotiator Liu He for trade talks from Wednesday will be cancelled. Not official as I update though.
In other weekend news, a further snubbing for the US President from North Korea, the country test-fired ballistic missiles over the weekend, & another yen positive to open the week.
On Iran, Trump is reportedly to announce new sanctions this week. US National Security Advisor Bolton also announced a strike force will be sent to the Gulf in response to escalation from Iran. Bolton stated the US is sending bombers and the USS Abraham Lincoln carrier group.
Japan completes its final day of the 10-day holiday, markets will reopen on Tuesday.
Still to come: