- Russian oil flows to China have hit their highest levels since Ukraine invasion
- Japanese unit of failed cryptocurrency exchange FTX will allow customer withdrawals today
- CAD traders - heads up for inflation data due Tuesday 21 February 2023
- Heads up for BOJ monetary policy comments expected tomorrow
- ICYMI - China launches pilot scheme to boost private investment in real estate
- ICYMI - HK regulator said cryptocurrency-trading companies would need to getting licenses
- PBOC sets USD/ CNY central rate at 6.8557 (vs. estimate at 6.8550)
- More from Bank of Japan Governor Kuroda - wage growth likely to quicken
- Bank of Japan Governor Kuroda, Fin Min Suzuki say watching FX rate moves closely
- Japan Jibun preliminary PMI February: Manufacturing falls at its fastest rate in 2.5 years
- RBA February minutes says a February pause in rate hikes "not an option"
- RBNZ Shadow Board recommend +50bp interest rate hike this week at monetary policy meeting
- Goldman Sachs - "several companies viewed the staffing situation as back to normal"
- Australia weekly consumer confidence 80.4 (prior 78.1)
- NZ Treasury says cyclone reconstruction will boost economic activity, RBNZ implications
- Australia preliminary February PMI: Manufacturing 50.1 (prior 50), Services 49.2 (48.6)
- New Zealand PPIs Q4 2022 lower than the previous quarter - reduced inflationary pressure
- Former UK PMs Johnson & Truss call on Sunak to provide fighter jets to Ukraine immediately
- Trade ideas thread - Tuesday, 21 February 2023
- Forexlive Americas FX news wrap 20 Feb: US and Canada holiday stalls trading activity
US Treasury yields traded higher during the session, helping the US dollar to rise, although moves were not large. USD/JPY tested towards 134.50 and EUR/USD down to just under 1.0665. GBP, CAD, AUD and NZD all lost some ground against the big dollar also.
UST trade reopens in the US Tuesday after the long weekend.
News flow was very light indeed. Data were the flash PMIs kicking off in Australia and Japan.
On the central bank front we had some comments from Bank of Japan Governor Kuroda (see bullets above) and also the February meeting Reserve Bank of Australia minutes. These were preceded last week by extensive public remarks from RBA Governor Lowe (testimony in parliament twice last week) and thus did not have anything to surprise. There was some chatter on the fact that the minutes said the Bank considered a +25 and a +50 bp rate hike, while a pause was “not an option”. Deputy Governor Bullock spoke back in December, saying a pause was an option. But that was before the shockingly high Q4 CPI data hit in January, which jolted the RBA back to reality and the February rate hike.
Asian equity markets:
Japan’s Nikkei 225 -0.1%
China’s Shanghai Composite +0.1%
Hong Kong’s Hang Seng -1.2%
South Korea’s KOSPI +0.1%
Australia’s S&P/ASX 200 -0.2%