Forex news for Asia trading on Monday 9 August 2021
- Goldman Sachs has cut its forecast for China GDP (economic growth) in Q3
- US Senate infrastructure bill update - vote expected Monday, or Tuesday
- China July CPI 1.0% y/y (vs. expected 0.8%) & PPI 9.0% y/y (expected 8.8%)
- Weekend data - China’s foreign exchange reserves rose more than expected in July
- PBOC sets USD/ CNY reference rate for today at 6.4840 (vs. Friday at 6.4625)
- Australia coronavirus - NSW state records 283 new cases after nearly 600 reported over the weekend
- Weekend news - Warren Buffett slowed his purchases in Q2
- Newswires report US Senate steps towards passing the infrastructure bill
- New Zealand coronavirus - nearly 100 workers in isolation
- The 3 factors that combined for the perfect storm for gold
- More on gold - getting smashed
- Gold price dropping hard
- Heads up for GBP traders - some local UK politics in focus - Johnson, Sunak
- ECB's Weidmann weekend comments - wants to make clear that the Bank will tighten policy if necessary
- Goldman Sachs has slightly increased their probability of a November Fed taper announcement
- Trade ideas thread - Monday 9 August 2021
- Australia coronavirus - Victoria state makes vaccine available to all adults
- Monday morning open levels - indicative forex rates - 9 August 2021
- Weekend Australia coronavirus - outbreak accelerates
- Crypto is having a good weekend, ETH is above US$3,000
- US Senate inches ahead with infrastructure bill
- China trade data for July: Exports +19.3% y/y (expected +20.8%) & Imports +28.1% y/y (expected +33.0%)
Gold plunged soon after the opening of Sunday evening US futures trade with a rapid drop towards $1680, down circa $80. The move came at a very low liquidity time, it doesn't get much poorer than a Sunday evening, which is early Monday Asia time.
There is more in the posts above on the drop but in summary circa 24K contracts were sold into the market (astute traders will realise that the same number were bought ... however it was the bids getting pummelled, not the offers getting lifted). The dumping of the contracts have the fingerprints of a forced liquidation, $1750 was earmarked as a technical level so stop-loss selling will have contributed.
Gold has subsequently retraced much, not all, of the move down with a bounce to around $1740 to be net down just over $20 on the session. Silver fell with gold, its retraced somewhat also.
Oil has been trading heavily through the session, traders are wary of a slowdown for demand as China tightens restrictions and curbs travel during the normally strong demand summer season. Industrial commodities on China exchanges are also lower on the day.
Across FX there is little net change on the session after most major FX dipped against the US dollar in early trade. AUD/USD and NZD/USD are both net higher after early losses.
In the US President Biden looks set to get approval from the Senate for his bipartisan infrastructure deal. It has cleared all substantive hurdles in the upper house and looks set for a final, approving, vote on Monday or perhaps Tuesday at the latest.
Gold:
