ForexLive Asia FX news wrap: Hong Kong index stabilises

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

Canadian election results begin to trickle in: One early sign of weakness for Trudeau

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 -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 with
the holiday ion 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. Notable, 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 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). 

Forex news for Asia trading onTuesday21stSeptember 2021