Forex news for Asia trading on Tuesday 21st September 2021
- Chip shortage - Honda says domestic production to be at 40% of capacity in August - September
- Evergrande Chair getting all poetic - says the firm will walk out of darkest moment
- US Treasury Secretary Yellen to meet UK PM Johnson on Wednesday
- Canadian TV networks declare a win for Trudeau's Liberals
- Trudeau's Liberal showing stronger in early results in Quebec and Ontario
- S&P downgrades another China property developer group
- Pelosi pushing forward, urges 'decisive action' on passing spending legislation
- RBA September meeting minutes - see no rate rise until 2024
- EU foreign policy head says there will be Iran nuke deal meeting on sidelines of UNGA
- No CNY reference rate setting today - China is on holidays
- Coronavirus - Australia New South Wales new cases back above 1000
- New Zealand dollar is slipping towards 0.7000. Expectations of aggressive RBNZ rate hikes have diminished.
- Coronavirus - New lockdowns for two areas in Australia
- Australian inflation expectations are climbing, quickly
- S&P ratings says Evergrande is likely to default
- China's President Xi is trying to roll back China’s Western-style capitalism
- Australian weekly consumer sentiment 103.3 (previous week 103.1)
- Erdogan Says Turkish Government Is ‘At War’ with Cryptocurrencies
- Bank of England meets Thursday - preview
- Australian PM Morrison says its not easy to get a trade agreement with the EU
- WSJ confirms Shell has agreed to sell Permian basin assets to ConocoPhillips
- NZD traders - heads up for the GDT dairy auction coming up Tuesday
- France's Le Drian says time is running out for potential agreement on Iran nuke deal
- RBNZ Hawkesby says policy committee more confident on employment & inflation
- New Zealand Q3 consumer confidence 102.7 (prior 107.1)
- Trade ideas thread - Tuesday 21 September 2021
- ICYMI - UK Business secretary Kwasi Kwarteng says no bailout for failed energy companies
- FedEx will increase shipping rates on January 3, 2022
- ICYMI - "Transitory" inflation remarks from all over the place
- NASDAQ down 2.2%, S&P500 down 1.6%
I hope my headline to this post doesn't age badly, its still morning in HK!
After the rout on Monday with Evergrande woes playing out in Hong Kong and the holiday in China there was a degree of calm today. Mainland Chinese markets were closed again for a holiday and return on Wednesday.
The other event during the session was the Canadian election which has been 'called' (by CTV and others) for incumbent Prime Minister Trudeau but with a reduced number of seats and likely a minority government.
On currencies, we had a much-awaited speech from Reserve Bank of New Zealand Assistant Governor Hawkesby. Notably, Hawkesby poured cold water on the expectation (not the majority expectation but not negligible either) of a 50bp rate hike at the next RBNZ policy meeting, indicating that a 25bp incremental hike was more appropriate for a world coping with lingering uncertainties due to the virus. NZD/USD slipped a little lower towards 0.7000 but as I post it has recovered that tiny decline to be more or less unchanged for the session.
The Reserve Bank of Australia released its September meeting minutes today. Governor Lowe had spoken at length since the meeting so the minutes did not add much to what we had already gleaned from the Governor's remarks last week. AUD/USD inched a touch higher, as had EUR/USD (since back to basically unchanged also).
USD/CAD is near its session low, of a small range.
Bitcoin hit lows circa $41K. About the only catalyst obvious were comments reported from Turkey's Erdogan (see bullets above).
