Forex news for Asia trading Thursday 13 December 2018
- China comments now on 2nd detained Canadian
- More on the second Canadian thought to have been detained in China … yes, the pic is relevant!
- China social media LOLs: Bailed Huawei exec GPS ankle bracelet is made by Huawei
- Nissan is said to be planning to repatriate $1.1bn from China
- Japan chief cabinet secretary Suga says no plan to limit Huawei use at this stage
- China's annual economic policy meeting set for December 19 -21
- More on China buying US soy beans
- Another bank weighs in on RBA rate cuts - 'Nah'
- PBOC sets USD/ CNY central rate at 6.8769 (vs. yesterday at 6.9064)
- ICYMI: China to revise ‘Made in China 2025’ plan
- AUD - RBA reiterates when and how it will intervene in the currency
- UK - RICS head economist says Brexit uncertainty weighing on house prices
- Australian consumers' inflation expectations, December: 4.0% (prior 3.6%)
- NZ fiscal update
- US Soybean Export Council says China has ordered 1.5m-2m tons of soy
- Draft EU Brexit document - to look into backstop assurances
- Brexit - EU leaders poised to spend only 10 minutes speaking with UK PM May
- Another Canadian questioned in China, Canada has since lost contact with him
- Canada's Foreign Minister says Huawei extradition case should not be politicised
- Breaking: The trade ideas thread for Thursday 13 December 2018 is the new UK PM
- UK Conservative party chairman says we should respect the vote
- Scottish leader Sturgeon says UK PM May is a lame duck
- UK PM May: I heard what parliament said about Nth Ireland backstop
USD/JPY traded higher today, back to test 113.50 (its just under there as I post) on what appear to be positive stories on trade (China buying US soybeans) and perhaps also the vote for stability (of a sort) in the UK with PM May retaining her position. 'Risk' currencies, though, did little. For example, AUD/USD traded 15 or so points higher only, NZD up a touch also (more on the NZD below). EUR and GBP are net little changed.
The news on UK PM May hit late NY, Greg's US time wrap has coverage. GBP/USD popped above 1.2660, dropped back toward 1.2600 and then settled sideways in Asia, hourly ranges diminishing while we await the next set of developments on Brexit.
The New Zealand government released its half-year Fiscal and Economic Update today, cutting the expected size of surpluses and also its GDP forecast. NZD/USD dropped a few points on the release only. While expected surpluses are lower, they are still surpluses and ditto for the GDP forecast, lower but still a reasonable 2.9%.
From China today the PBOC revalued the onshore yuan a little higher at the daily mid-rate setting. Eyes are on the yuan as a guide to how well trade negotiations are going with the US; a stronger yuan is thought to indicate negotiations are going well, while a weaker not so much. The 90-day time horizon for talk conclusions looks to be an impossible deadline, but who's to say this will not be extended? Stocks fared well, the Shanghai Composite up 1.6% as I update.
The China response to Canada's arrest of Huawei CFO Meng Wanzhou continued today, with confirmation from state media of the detention of a second Canadian in China on the same "engaging in activities that endangered China's national security" charge. USD/CAD is not a lot changed on the session.
Still to come:
ECB preview: The end of QE, the continuation of some bad habits
- European Central Bank meeting today and Draghi presser - preview
- Swiss National Bank meet on December 14 2018 - preview and EUR/CHF outlook
- SNB, ECB meet Thursday. So does Norway's central bank - preview
- FX option expiries for Thursday 13 December 2018 at the 10am NY cut