Session wrap Forex news for Asian trading on Tuesday, 29 August 2023 <!--> --> It was a day of minor movement only for major forex rates. AUD, NZD, EUR, GBP and even the hapless yen all gained a few points against the USD. Ranges were lacklustre though and...
Chinese state media says the PBOC may cut banks’ RRR earlier than expected
State media with the report that a sooner-than-expected RRR cut may be on the way.The report cites rising rates in China despite recent official rate cuts. Says the People's Bank of China would cut the RRR to better maintain reasonable and ample liquidity. ---The...
Toyota production halt now at 14 plants in Japan – ‘system glitch’
Earlier on this is here, looks like some form of cyberattack (Toyota says it is not):Japan's industry minister says now he has received information that the output disruption has spread to 14 plants. Update from Toyota:a malfunction with its production systemthe...
Japan’s govmt says the country may be at an inflection point in its battle with deflation
The Japanese government's annual economic white paper says "Japan has seen price and wage rises broaden since the spring of 2022. Such changes suggest the economy is reaching a turning point in its 25-year battle with deflation". "We shouldn't dismiss the fact a...
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CryptoQuant data shows that Bitcoin trading volume is at its lowest in more than 4 years
CryptoQuant is a provider of on-chain and market data analytics for cryptocurrency investors.From their latest:Bitcoin’s trading volume hit its lowest level in almost five years this month analysis of CryptoQuant data from both spot and derivatives exchanges shows the...
PBOC sets USD/ CNY mid-point today at 7.1851 (vs. estimate at 7.2854)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...
Toyota has halted production at 12 plants in Japan citing a system glitch
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Oil – China weekly flights are 13% above pre-COVID levels
This snippet from ANZ on oil demand in China, some better news:signs of strength in China’s jet fuel market are likely to boost sentiment. China weekly flights have surged 13% above pre-COVID levels in the week ending 20 August. International travel is picking up,...
RBA’s own staff could be signalling low faith in durably hitting the Bank’s CPI target
This snippet from Scotia gave me a giggle ... the RBA's own staff may not believe the Bank can hit its CPI target:Australia updates CPI for July on Tuesday evening (ET) ahead of the RBA’s expected hold on September 5th. New RBA Governor Michele Bullock will speak...
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UK inflation indicator at a 10 month low
British Retail Consortium (BRC) data for UK shop price inflation has dropped to a 10-month low in August.Annual shop price inflation 6.9%from 7.6% y/y in July+0.5% m/m"These figures would have been lower still had the government not increased alcohol duties earlier...
Australia data – ANZ Roy Morgan weekly consumer confidence 78.1 (prior 79.0)
Australian Weekly ANZ Roy Morgan Consumer Confidence surveyANZ comment:The resilient labour market and beginning of what we think will be an extended pause from the RBA is yet to result in a confidence above 80, which was achieved even during Delta lockdowns in...
Japan data – July unemployment rate 2.7% (expected 2.5%)
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
US equities – Goldman Sachs says the tech sector is not going up for the right reasons
Snippet comments from Goldman Sachs on technology stocks in the US ... but there is still reason to go higher (see TINA comments below):tech stocks are coming off a good weeknot going up on ‘good’ newsnot going up for the right reasons “The bad news for the sector...
Bank of America still look for 1 more Fed rate hike, +25bp in November (75bp cuts in 2024)
Bank of America says hawks and doves both got something from Jackson Hole:BoA's main takeaways:Fed Chair Powell's speech at Jackson Hole was somewhat balanced, with hawkish and dovish elements. Markets took the comments as slightly hawkish, moving closer to our call...
ANZ is looking for downside in EUR/USD this week, GBP more favoured on crosses
This summary is via the folks at eFX. For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here. ANZ has released its latest currency outlook, and it presents a bearish view...
UBS on China’s latest supportive policy:- “we see reason for optimism” (and a weaker yuan)
The news out of China from the weekend was of supportive policy moves:A snippet from UBS, analysts there are optimistic on the developments. On more broader moves from Chinese policy makers:China’s broader package of response measures is starting to take shape. This...
Goldman Sachs forecast USD/JPY to 155 if the BOJ maintains its dovish stance
From a Goldman Sachs note on the JPY Friday last week. In brief the analysts expect USD/JPY to 150 if the BOJ maintains its ultra-easy monetary policy. If the Bank backs away from this though that's a risk to the forecast.Goldman Sachs forecast 155 in 6 months for...
Federal Reserve policy rates have likely peaked, first cut only likely middle of 2024
A snippet from US financial firm Principal Asset Management, says that while the Federal Open Market Committee (FOMC) has likely hit peak Fed Funds the message from Powell doesn't rule out further hikes if necessary. “As long as economic growth is strong, a resurgence...